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en-usSun, 15 Sep 2019 06:21:39 -0400Sun, 15 Sep 2019 06:21:39 -0400The latest news on Startups from Business Insiderhttps://static3.businessinsider.com/assets/images/bilogo-250x36-wide-rev.pngBusiness Insiderhttps://www.businessinsider.com
https://www.businessinsider.com/menlo-ventures-jean-paul-sanday-inflection-fund-growth-stage-investing-2019-9Too much success can kill a startup. Meet Menlo Ventures' new 'inflection stage' fund that helps young startups dealing with late-stage problems.https://www.businessinsider.com/menlo-ventures-jean-paul-sanday-inflection-fund-growth-stage-investing-2019-9
Sat, 14 Sep 2019 09:00:00 -0400Megan Hernbroth
<p><img src="https://static4.businessinsider.com/image/5d7aa2f62e22af1419238f74-2400/jp34134.jpg" border="0" alt="JP Sanday" data-mce-source="Menlo Ventures" data-mce-caption="Menlo Ventures partner Jean-Paul Sanday" /></p><p></p>
<ul class="summary-list">
<li style="font-weight: 400;"><strong><a href="https://www.businessinsider.com/menlo-ventures-shawn-carolan-uber-2019-4">Menlo Ventures</a> announced <a href="https://www.businessinsider.com/menlo-ventures-shawn-carolan-uber-2019-4">Jean-Paul Sanday would join the firm to lead its new "inflection stage" fund in August</a>.</strong></li>
<li style="font-weight: 400;"><strong>The former growth equity investor also led growth teams at two startups, an experience he says makes him uniquely positioned to advise startups just starting to hit the rocky <a href="https://www.businessinsider.com/venture-capital-focused-on-health-tech-first-round-jumpstart-foundry-2019-8">inflection point around a Series B or Series C funding round</a>.</strong></li>
<li style="font-weight: 400;"><strong>According to Sanday, young startups are hitting this inflection point earlier than ever due to an increase in size of early funding rounds and availability of venture capital. That makes it even more important to advise new founders on crucial details like hiring, marketing, and customer experience, he said.</strong></li>
<li style="font-weight: 400;"><strong>Sanday also said many investors writing $100 million checks don't empathize with founders struggling to manage a quickly growing business, setting everyone up for a contentious relationship down the road.</strong></li>
<li style="font-weight: 400;"><strong><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</strong></li>
</ul>
<p>The massive funding rounds going to startups aren't just squeezing out early-stage investors. They're forcing companies to grow at all costs, whether or not the founders are ready for it.</p>
<p><a href="https://www.businessinsider.com/menlo-ventures-shawn-carolan-uber-2019-4">Menlo Ventures</a> has created a fund dedicated solely to these founders called an "inflection fund." Instead of trying to beat mega-funds to the seed funding punch, Menlo is banking on its track record and expertise to offer founders a <a href="https://www.businessinsider.com/venture-capital-focused-on-health-tech-first-round-jumpstart-foundry-2019-8">guiding light around a Series B or Series C stage</a>. And in August, the firm brought on <a href="https://www.businessinsider.com/menlo-ventures-shawn-carolan-uber-2019-4">former growth equity investor Jean-Paul Sanday</a> to lead the charge.</p>
<p>"Our average check at the fund I worked on at Summit was $30 [million], $35 [million], or $40 million. Now it's $130 million," Sanday told Business Insider. "The businesses are just different businesses, but they still need help no sooner or no later than before."</p>
<p><strong>Read More: </strong><a href="https://www.businessinsider.com/accel-amy-saper-investor-early-twitter-and-stripe-employee-2019-9"><em>An early employee of Twitter and Stripe is joining Accel to hunt for the next generation of first-time founders</em></a></p>
<p>Having been on both the investing and startup side, Sanday is a prime candidate to help Menlo Ventures' portfolio companies navigate what he calls the "rocky" inflection point in growth. According to Sanday, a startup has hit the inflection point once the recruiting team starts receiving resumes unsolicited, customer growth is outpacing what would be expected based on the team's marketing budget, and customer experience plummets.</p>
<p>In the past, this stage was reserved for a company that had been around for several years, Sanday explained. But with the sudden influx of funding, immature founders are finding themselves with ballooning costs, teams, and issues without understanding how to actually address any of them.</p>
<p>"The businesses can grow up really fast or get a lot of traction in the headline numbers really quickly," Sanday said. "They have a lot of employees, a lot of revenue, but their maturity is no different, right? Most of the entrepreneurial journey is knowing how to do that."&nbsp;</p>
<h2><strong>An insider's growth mindset</strong></h2>
<p>Sanday came to Silicon Valley like many other investors-to-be: he enrolled at Stanford, and eventually started a mobile ads company with a classmate while he was finishing business school.&nbsp;</p>
<p>"We decided not to raise money for it because it was a mobile ads network and, at the time, that was like the Wild West and there's all kinds of messy in that industry," Sanday said.&nbsp;</p>
<p>Still intrigued by the burgeoning mobile industry, Sanday moved over to a mobile gaming startup to run the young company's growth operation. He said during his tenure, the company went from being "five people working out of a garage" to over 250 employees in "an actual office." Although he's written plenty of hefty investment checks during two runs at private equity firm Summit Partners, Sanday says his most valuable experience was experiencing that inflection point first hand.</p>
<p>"At this stage there's so much more uncertainty," Sanday said. "You can have a differentiating perspective, a different angle, certainly in the way you can help them,but I also think there's room for you to lean in more."</p>
<p>Sanday will be doling out checks ranging from $20 million to $40 million, with room for follow on investments, through the inflection fund. Having just returned from paternity leave, he has not personally invested just yet.&nbsp;&nbsp;</p>
<p>"My bones speak to me and sometimes there are just things that I can just know about or empathize with just simply as a party to the founder," Sanday said. "It's hard when you're writing a $100 million checks to empathize like that. Some of the entrepreneurs haven't done this before, so they don't know what those companies look like."</p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/base10-base11-automation-will-upend-venture-capital-2019-9" >Automation is coming for venture capital, and one young VC firm is betting its homegrown tech gives it an edge over Sand Hill Road's slow-to-adapt legacy investors</a></strong></p>
<p><a href="https://www.businessinsider.com/menlo-ventures-jean-paul-sanday-inflection-fund-growth-stage-investing-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/amazon-cleaning-robot-review-cleaned-roomba-mop-vacuum-robots-2019-7">I cleaned my entire apartment with 4 of Amazon's highest-rated cleaning robots, but I could've done a much better job myself</a></p> https://www.businessinsider.com/definitive-history-wework-company-valuation-2019-9The history of WeWork’s meteoric valuation rise — and fallhttps://www.businessinsider.com/definitive-history-wework-company-valuation-2019-9
Fri, 13 Sep 2019 16:42:29 -0400Megan Hernbroth
<p><img src="https://static4.businessinsider.com/image/5d7957842e22af06ad47a635-1201/wework adam neumann 4x3.png" border="0" alt="wework adam neumann 4x3" data-mce-source="Jackal Pan/Getty Images; Jacqueline Larma/AP Images; Samantha Lee/Business Insider" /></p><p></p>
<ul class="summary-list">
<li style="font-weight: 400;"><strong>Soon-to-be-public <a href="https://www.businessinsider.com/heres-the-latest-wework-news-2019-6">WeWork</a>, the coworking company that leases office space to other startups, is<a href="https://www.businessinsider.com/exclusive-wework-considers-ipo-valuation-of-as-low-as-10-billion-sources-2019-9">&nbsp; reportedly targeting a $10 billion valuation</a> for its public debut.</strong></li>
<li style="font-weight: 400;"><strong>The valuation is significantly lower than the $47 billion valuation it once commanded and comes as WeWork's team <a href="https://www.businessinsider.com/wework-3-trillion-addressable-market-grossly-overstated-experts-say-2019-9">scrambles to get investors on board with its heady IPO</a>.</strong></li>
<li style="font-weight: 400;"><strong>Since it was founded in 2011, WeWork has raised a whopping $8.39 billion in private funding from backers like <a href="https://www.businessinsider.com/wework-pressured-by-softbank-to-shelve-ipo-report-2019-9">SoftBank's $100 billion Vision Fund</a>.</strong></li>
<li style="font-weight: 400;"><strong>See WeWork's full valuation history <a href="https://my.pitchbook.com/profile/62181-28/company/profile#deal-history">based on Pitchbook data</a>.</strong></li>
<li style="font-weight: 400;"><strong><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</strong></li>
</ul>
<p><a href="https://www.businessinsider.com/heres-the-latest-wework-news-2019-6">WeWork's</a> public offering is off to a rocky start, and it hasn't even listed its shares yet.</p>
<p>Concerns around the coworking <a href="https://www.businessinsider.com/wework-considering-reducing-adam-rebekah-neumann-power-2019-9">startup's governance</a>, <a href="https://www.businessinsider.com/wework-3-trillion-addressable-market-grossly-overstated-experts-say-2019-9">real estate holdings</a>, succession plan, employee retention, and <a href="https://www.businessinsider.com/wework-pressured-by-softbank-to-shelve-ipo-report-2019-9">questionable patent purchases</a> have spooked potential investors. WeWork has amended its SEC filings twice already to address several of those concerns, but it might not be enough.</p>
<p>According to a Reuters report, <a href="https://www.businessinsider.com/exclusive-wework-considers-ipo-valuation-of-as-low-as-10-billion-sources-2019-9">WeWork will target a $10 billion valuation</a> for its IPO, drastically lower than the $47 billion valuation it last fetched in private markets. A $10 billion public valuation would be only slightly above the total amount of funding WeWork has taken in as a private company: about $8.39 billion since 2011, <a href="https://my.pitchbook.com/profile/62181-28/company/profile#deal-history">according to Pitchbook data</a>.</p>
<p><strong>Read More: </strong><a href="https://www.businessinsider.com/wework-unveil-ipo-filing-next-week-adam-neumann-2019-8"><em>WeWork's IPO filing will reportedly be revealed as soon as next week, giving us our best look yet at its business</em></a></p>
<p>It's a striking turn of events for WeWork, which has experienced a meteoric rise since its founding in 2010 by CEO Adam Neumann, his wife Rebekah Neumann, and Miguel McKelvey. The New York-based startup leases office space to other startups and has expanded to more than 100 cities in 29 countries &mdash; a turbo-charged expansion plan that has required WeWork to continually raise capital as it burns through billions of dollars.&nbsp;</p>
<p>Until now, even the savviest investors, from venture capital firms to mutual funds to <a href="https://www.businessinsider.com/wework-pressured-by-softbank-to-shelve-ipo-report-2019-9">Japan's SoftBank</a>, were eager to pump money into WeWork, driving up its stratospheric valuation. But in this case, what goes up appears to be coming down.</p>
<p><strong>Here's the definitive history of WeWork's valuation ahead of its much anticipated public offering:</strong></p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/base10-base11-automation-will-upend-venture-capital-2019-9" >Automation is coming for venture capital, and one young VC firm is betting its homegrown tech gives it an edge over Sand Hill Road's slow-to-adapt legacy investors</a></strong></p>
<h3>October 2011: $1 million seed round, undisclosed valuation</h3>
<img src="https://static6.businessinsider.com/image/511e7283eab8ea0c02000001-400-300/october-2011-1-million-seed-round-undisclosed-valuation.jpg" alt="" />
<p><p>WeWork's $1 million seed round in October 2011 was led by DAG Ventures and came with an undisclosed valuation.</p></p>
<br/><br/><h3>July 2012: $17 million Series A, $97 million valuation</h3>
<img src="https://static2.businessinsider.com/image/5d7be2c32e22af2bb44d1f2b-400-300/july-2012-17-million-series-a-97-million-valuation.jpg" alt="" />
<p><p>Less than a year after its seed round, WeWork raised its Series A in July 2012. The $17 million round, which valued the startup at $97 million, was led by an undisclosed group of investors.</p></p>
<br/><br/><h3>May 2013: $40 million Series B, $440 million valuation</h3>
<img src="https://static6.businessinsider.com/image/55844462ecad042e1dbebe5c-400-300/may-2013-40-million-series-b-440-million-valuation.jpg" alt="" />
<p><p>WeWork also did not publicly disclose investors for its $40 million Series B in May 2013. The round valued the burgeoning startup at $440 million post-money.</p></p>
<br/><br/><h3>February 2014: $150 million Series C, $1.49 billion valuation</h3>
<img src="https://static4.businessinsider.com/image/5d7bef3e2e22af2f92599774-400-300/february-2014-150-million-series-c-149-billion-valuation.jpg" alt="" />
<p><p>The coworking startup officially crossed into unicorn territory in February 2014 with its $150 million Series C. The round valued the company at $1.49 billion and included JP Morgan Chase, Harvard Management, Benchmark Capital, and Mort Zuckerman.</p></p>
<br/><br/><h3>October 2014: $355 million Series D, $5 billion valuation</h3>
<img src="https://static3.businessinsider.com/image/5d7a8fd62e22af2f653d1e15-400-300/october-2014-355-million-series-d-5-billion-valuation.jpg" alt="" />
<p><p>Within ten months of its Series C, WeWork raised another $355 million in Series D funding from T. Rowe Price, Wellington Management and Goldman Sachs, in addition to follow-on funding from the Series C investors. The round valued WeWork at $5 billion.</p></p>
<br/><br/><h3>June 2015: $434 million Series E, $10.23 billion valuation</h3>
<img src="https://static5.businessinsider.com/image/5a1d811ff914c35a018b6681-400-300/june-2015-434-million-series-e-1023-billion-valuation.jpg" alt="" />
<p><p>By June 2015, WeWork had already moved on to late-stage private funding with its $433.93 million Series E from Fidelity. The other investors in the round were not publicly disclosed, but the round valued the startup at $10.23 billion.</p></p>
<br/><br/><h3>April 2016: Debt financing, valuation unchanged</h3>
<img src="https://static1.businessinsider.com/image/59b4b34c45e2381d008b6259-400-300/april-2016-debt-financing-valuation-unchanged.jpg" alt="" />
<p><p>WeWork pursued its first round of debt financing in April 2016 with Wells Fargo. The undisclosed amount of financing did not alter the startup's valuation from its most recent venture round in June 2015.</p></p>
<br/><br/><h3>October 2016: $690 million Series F, $16.9 billion valuation</h3>
<img src="https://static4.businessinsider.com/image/5d5410e5cd978438cc11bc77-400-300/october-2016-690-million-series-f-169-billion-valuation.jpg" alt="" />
<p><p>The debt financing in early 2016 bought WeWork time to finalize its $690 million Series F venture round by October 2016. The round valued the company at $16.9 billion and was led by Legend Holdings and Hony Capital. All existing public investors also participated in the round.</p></p>
<br/><br/><h3>August 2017: Insider stock sales to SoftBank, valuation unchanged</h3>
<img src="https://static2.businessinsider.com/image/5d7be43d2e22af37df37f294-400-300/august-2017-insider-stock-sales-to-softbank-valuation-unchanged.jpg" alt="" />
<p><p>An undisclosed group of investors sold $1.3 billion worth of WeWork shares to SoftBank's massive Vision Fund. The transaction did not alter WeWork's valuation.</p></p>
<br/><br/><h3>August 2017: $1.7 billion Series G, $21.2 billion valuation</h3>
<img src="https://static2.businessinsider.com/image/5d485b31100a2456013bfb79-400-300/august-2017-17-billion-series-g-212-billion-valuation.jpg" alt="" />
<p><p>SoftBank also led WeWork's $1.7 billion Series G funding round that same month. The round valued the now 7-year-old startup at $21.2 billion, and brought on Catalyst Investors, Alpha JWC Ventures, Syren Capital Advisors, Primary Venture Partners and StraightPath Venture Partners as investors.</p></p>
<br/><br/><h3>January 2019: $1 billion insider stock sales to SoftBank, $20 billion valuation</h3>
<img src="https://static2.businessinsider.com/image/5c995fb36b526557654c38f4-400-300/january-2019-1-billion-insider-stock-sales-to-softbank-20-billion-valuation.jpg" alt="" />
<p><p>Softbank purchased another $1 billion worth of WeWork shares in January 2019 from undisclosed investors and WeWork employees. At an even $20 billion valuation, the round gave WeWork a lower post-money valuation but a higher pre-money valuation than the Series G funding round 18 months earlier.</p></p>
<br/><br/><h3>January 2019: $5 billion direct investment from SoftBank, $47 billion valuation</h3>
<img src="https://static4.businessinsider.com/image/59b4bf4d45e2381e008b62c3-400-300/january-2019-5-billion-direct-investment-from-softbank-47-billion-valuation.jpg" alt="" />
<p><p>SoftBank's purchase of insider shares was completed in connection with a $5 billion primary investment into WeWork that valued the company at $47 billion, more than double its previous valuation, according to Pitchbook.&nbsp;</p>
<p>The round included $1 billion in convertible debt and a $3 billion warrant agreement, according to Pitchbook data.</p></p>
<br/><br/><h3>May 2019: $110 million debt financing, valuation unchanged</h3>
<img src="https://static4.businessinsider.com/image/5cdecac4021b4c0e3c1672fc-400-300/may-2019-110-million-debt-financing-valuation-unchanged.jpg" alt="" />
<p><p>WeWork got $110 million in debt financing from Citizens Bank and Pacific West Bank in May 2019. The financing did not change the startup's previous $47 billion valuation.</p></p>
<br/><br/><h3>August 2019: WeWork files IPO paperwork</h3>
<img src="https://static1.businessinsider.com/image/5d3f0ef18d664259ed626e04-400-300/august-2019-wework-files-ipo-paperwork.jpg" alt="" />
<p><p>WeWork indicated in its S-1 filing that it planned to raise $1 billion in its IPO, though that number was likely a placeholder. The company did not provide details on the numbers of shares it wanted to sell or the price and valuation it was seeking.</p>
<p>&nbsp;</p></p>
<br/><br/><h3>September 2019: WeWork seeks reduced, $10 billion to $12 billion valuation for IPO</h3>
<img src="https://static6.businessinsider.com/image/5d7bfde62e22af255045a353-400-300/september-2019-wework-seeks-reduced-10-billion-to-12-billion-valuation-for-ipo.jpg" alt="" />
<p><p><a href="https://www.businessinsider.com/exclusive-wework-considers-ipo-valuation-of-as-low-as-10-billion-sources-2019-9">According to a Reuters report on Friday,</a> WeWork is now seeking to IPO at a valuation of between $10 billion and $12 billion &mdash; knocking the company's valuation down to where it was in 2015. It is not clear if WeWork hopes to raise a lower amount during its public debut, or if SoftBank will make back the nearly $9 billion it publicly invested in the company.</p></p>
<br/><br/> https://www.businessinsider.com/softbanks-100-billion-vision-fund-draws-mixed-venture-industry-views-2019-9Venture investors still aren't sure what to make of SoftBank's $100 billion Vision Fund. Depending on who you ask, they're either rooting for it, or gleeful that it's struggling with WeWork and Uber. (UBER)https://www.businessinsider.com/softbanks-100-billion-vision-fund-draws-mixed-venture-industry-views-2019-9
Fri, 13 Sep 2019 08:30:00 -0400Troy Wolverton
<p><img src="https://static4.businessinsider.com/image/5d797f632e22af0361653244-2400/5d2fe3e1699e5c551f64f072.jpg" border="0" alt="Japan's SoftBank Group Corp Chief Executive Masayoshi Son attends a news conference in Tokyo, Japan, November 5, 2018." data-mce-source="Kim Kyung-Hoon/Reuters" data-mce-caption="SoftBank CEO Masayoshi Son" /></p><p></p>
<ul class="summary-list">
<li>The venture-capital industry still isn't sure what to think of <a href="https://www.businessinsider.com/category/softbank">SoftBank's</a> $100 billion <a href="https://www.businessinsider.com/category/vision-fund">Vision Fund</a>, even as it has suffered setbacks on its investments in <a href="https://www.businessinsider.com/category/wework">WeWork</a> and <a href="https://www.businessinsider.com/category/uber">Uber</a>.</li>
<li>Some in the industry blame the fund for inflating startup values and funding rounds; encouraging founders to focus on growth and ignore costs and losses, no matter how big; and setting off an unhealthy arms race in the venture-capital world as firms raise ever larger funds.</li>
<li>But some think it's unfair to blame SoftBank for some of these trends, saying that funding rounds were getting larger long before the Vision Fund launched.</li>
<li>And others think the Vision Fund has benefited the venture and startup industries, allowing founders to dream bigger and enabling companies to develop longer in private without being under the scrutiny of public markets.</li>
<li><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</li>
</ul>
<p>Venture investors make tough calls every day, giving a thumbs-up or thumbs-down to an endless parade of startups.</p>
<p>But one thing Silicon Valley's investment luminaries can't agree on is what to make of SoftBank, the Japanese tech megafund that landed in their midst three years ago.</p>
<p>SoftBank's $100 billion Vision Fund, and SoftBank CEO Masayoshi Son, have changed the rules of the game. Thanks to SoftBank's jumbo-size checks and nose-bleed valuations, tech startups look and act a lot different from they did just a few years ago.&nbsp;</p>
<p>For some Silicon Valley insiders, that's a good thing, with Masa dollars opening the door to fresh opportunities and innovations. Others think SoftBank has distorted the technology market and the startup ecosystem, inflating values, enabling poor financial discipline, and empowering companies with little inherent or sustainable competitive advantage.</p>
<p>Now the debate is coming to a head, as two of SoftBank's biggest bets &mdash; Uber and WeWork &mdash; teeter on shaky ground and as SoftBank plows ahead with plans to raise a second $100 billion Vision Fund. For tech venture capitalists and founders, it's a proof-point moment that will put the SoftBank model to test, for better or for worse, and help Silicon Valley come to terms with its ultimate impact.</p>
<p>"SoftBank is like no one else," said Michael Duda, a managing partner at Bullish, a startup accelerator and investment firm that has backed the smart-fitness startup Peloton and the online mattress firm Casper. "Everything they do," he said, "is going to get a lot more scrutiny because of the size of what they're doing."&nbsp;</p>
<h2>SoftBank is warping the competitive landscape</h2>
<p>SoftBank is <a href="https://www.cnbc.com/2019/09/03/softbank-more-than-600-million-underwater-on-uber.html">down a reported $600 million on its investment in Uber</a>, thanks to its disappointing initial public offering and the subsequent drop in its stock price.&nbsp;</p>
<p>WeWork, meanwhile, is struggling to get investors on board with its public offering. In an effort to try to lure them in, it <a href="https://www.ft.com/content/111f8e00-d346-11e9-8367-807ebd53ab77">has discussed slashing its valuation to as little as $15 billion</a>, according to the Financial Times, or less than one-third the valuation SoftBank gave it in January, when the Vision Fund gave WeWork $2 billion in new funding.</p>
<p>Some in and around the venture-capital industry think Uber's and WeWork's struggles represent SoftBank's comeuppance &mdash; and they're glad to see it. It would be a good thing if the setbacks at those companies spurred SoftBank's limited partners in the Vision Fund to scrutinize its investments more closely or forced it to scuttle its <a href="https://www.businessinsider.com/softbank-108-billion-vision-fund-ii-2019-7">planned follow-on Vision Fund</a>, Greg Bohlen, a cofounder of Union Grove Venture Partners, said.&nbsp;</p>
<p>"They have been an incredibly disruptive force in the venture ecosystem," Bohlen said.</p>
<p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/softbank-will-likely-find-investors-vision-fund-ii-despite-wework-2019-9">WeWork and Uber are giving SoftBank a black eye, but that doesn't mean Vision Fund II is in trouble, experts say</a></em></p>
<p>Part of SoftBank's detrimental impact involves its role encouraging startups and founders to focus on growth and not concern themselves with costs or the bottom line, according to Bohlen and others. That dynamic is most obvious at WeWork, which has been bleeding billions of dollars in cash amid its worldwide expansion and has <a href="https://www.businessinsider.com/wework-s-1-prospectus-ipo-revenue-cash-flow-2019-8">seen its losses grow</a> about as quickly as its revenue.</p>
<p><img src="https://static1.businessinsider.com/image/5d5c926bcd9784157f3ae1e5-2400/gettyimages-945572014.jpg" border="0" alt="Adam Neumann, co-founder and chief executive officer of WeWork, speaks during a signing ceremony at WeWork Weihai Road flagship on April 12, 2018 in Shanghai, China. World's leading co-working space company WeWork will acquire China-based rival naked Hub for 400 million U.S. dollars." data-mce-source="Jackal Pan/Visual China Group via Getty Images" data-mce-caption="WeWork CEO Adam Neumann" /></p>
<p>Founders backed by SoftBank can lose their financial discipline because they know they have its huge pool of money behind them, Matt Murphy, a partner at Menlo Ventures, said. But the Vision Fund's huge investments may also be pressuring founders into growing their companies faster than the startups can sustainably maintain, he said.</p>
<p>"That's kind of an open question and concern," Murphy said.</p>
<p>The vast sums SoftBank is investing in startups &mdash; generally in the range of $100 million to several billion dollars &mdash; are warping the competitive landscape, Murphy and others in the industry said. Startups are getting a leg up in the market purely because they're swimming in SoftBank's cash &mdash; not because they've proven their business models or have some kind of important technological or organizational competitive advantage, Dan Malven, a managing director at 4490 Ventures, said.</p>
<p>The ability to raise vast sums has become their competitive advantage, he said. Conversely, those vast sums can discourage other investors from putting money into companies that actually have unique technologies or intrinsic competitive advantages, he said.</p>
<p>In general, the role SoftBank has played in the startup ecosystem has "not been healthy," Malven said.</p>
<p>In some cases, the Vision Fund seems to be trying to prematurely anoint a winner in particular markets, venture sources said. That seemed to be the case in the app-based dog-walking business, Murphy said.</p>
<p>His firm invested in Rover in 2014. Last year &mdash; four years after Menlo's investment &mdash; SoftBank <a href="https://www.businessinsider.com/wag-raises-300-million-from-softbank-hires-hilary-schneider-as-ceo-2018-1">invested $300 million in its competitor Wag</a>, even though Rover was still the "clear market leader" in the space, Murphy said. It still is, despite SoftBank's investment, he said.</p>
<p>"They tried to create a winner in Wag," Murphy said. "There are times," he added, "where they just say, 'We want to be in this market, and we're going to pick the winner and help fuel them with capital to help create that market.'"</p>
<p>SoftBank representatives did not return a call seeking comment.</p>
<h2>The Vision Fund has spurred an arms race in the venture industry</h2>
<p>SoftBank's large investments are also distorting the labor market, Malven said. Companies flush with the firm's funds are able to lure away top engineers and other workers who, in an ideal world, would have gone to work for startups that have more going for them than just SoftBank's cash, he said. If and when the unsustainable startups flounder, those workers will likely leave or be laid off, as has been&nbsp;<a href="https://www.businessinsider.com/uber-layoffs-global-marketing-team-2019-7">happening</a> <a href="https://www.businessinsider.com/uber-fires-435-engineering-and-product-employees-2019-9">lately</a> at Uber.</p>
<p><img class="float_left" src="https://static4.businessinsider.com/image/5a70d6f024d50525008b4650-1600/1.jpeg" border="0" alt="Hilary Schneider" data-mce-source="Wag!" />"There's just a lot of friction in the talent market that is bad for the overall industry," Malven said.</p>
<p>Some think the Vision Fund hasn't just been bad for startups and the tech industry but also for the venture-capital business. SoftBank's move to raise such an enormous fund has spurred other investors to scale up as well. In the past two years, <a href="https://www.businessinsider.com/r-success-with-snap-helps-venture-firm-lightspeed-raise-18-billion-for-new-funds-2018-7">Lightspeed Venture Partners</a>, <a href="https://www.businessinsider.com/r-sequoia-capital-plans-8-billion-global-fund-eyes-china-investors-sources-2018-1">Sequoia Capital</a>, and <a href="https://www.businessinsider.com/blackstone-raises-22-billion-fund-its-largest-ever-source-2019-4">Blackstone Group</a>, among others, have all raised their largest funds ever.</p>
<p>All that money flowing into the venture industry has led to an oversupply of capital, particularly among late-stage investors, some venture figures said. The surplus funds have fueled competition among different firms looking to get stakes in hot startups, increasing funding rounds and oversupplying companies with cash, they said. The end result is likely to be wasted capital and poor returns, they said.</p>
<p>"That upscaling" of venture funds in response to SoftBank "has just been horrendous," Union Grove's Bohlen said.</p>
<p>But not everyone in the venture industry blames SoftBank for the supersizing of venture funds and the swell in cash flowing into startups. Investors and companies around the world have been sitting on large pools of excess capital around the world, looking for places to invest it, some venture figures said. And venture rounds were getting bigger long before SoftBank set up the Vision Fund, they said.</p>
<p>Despite the huge size of the Vision Fund, it's not dominating the venture-capital market or determining the overall trends, Bullish's Duda said. It just doesn't account for enough investments to have that role, he said.</p>
<p>"They might get blamed. I think that's massively unfair," Duda said. He added: "There would still be high valuations no matter what."</p>
<h2>Founders are dreaming bigger</h2>
<p>Indeed, even if SoftBank fails to raise money for its planned second Vision Fund, the firehose of capital into the startup market likely won't abate much, Jai Das, the president and a managing director of Sapphire Ventures, said. There are still lots of other well-capitalized venture, private-equity, and hedge funds that are pouring money into the sector.</p>
<p>"There's plenty of capital still floating around even without the Vision Fund," Das said. He added: "I don't think the entrepreneurs will have a hard time raising money for, really, the good companies, even if Vision Fund is not around."</p>
<p>Regardless of how much responsibility they assign to SoftBank for the upscaling of funds and funding rounds, some in the venture industry, including Das, think the Vision Fund has played a positive role in the startup ecosystem. Even some of SoftBank's critics think the fund has benefited the tech and venture industries in some ways.</p>
<p>The big funding rounds that SoftBank has helped pioneer and lead have changed the mindset among entrepreneurs, Das said. It's allowed startup founders to think bigger about their companies and their potential, he said. It's now "normal" for companies whose annualized revenue has grown to only around $100 million to seek to raise $200 million or $250 million in new funding, Das said, which is much bigger than in the past.</p>
<p>The Vision Fund has "made entrepreneurs dream big, sometimes foolishly, sometimes not," Das said. Softbank, he continued, has "changed the whole dynamic."</p>
<h2>SoftBank has a global focus</h2>
<p>The copious amounts of cash flowing into startups from SoftBank and other investors has allowed startups to stay private longer and avoid the intense scrutiny of the public markets. That's been helpful to companies that have needed more than the average amount of capital or time to prove out their business models, Murphy said.</p>
<p><img src="https://static4.businessinsider.com/image/5ba21b202be4abc20e8b56b2-1173/screen shot 2018-09-19 at 104609.png" border="0" alt="Oyo founder Ritesh Agarwal" data-mce-source="Oyo" /></p>
<p>Twenty years ago, the public markets put up with Amazon's losses and gave the company time to develop, said Phil Libin, the cofounder and CEO of the technology incubator All Turtles, who was previously an investor with the venture firm General Catalyst. But Amazon was one of the few exceptions, he said.</p>
<p>Generally, public-market investors are looking for returns on a much shorter timescale than new startups can deliver, Libin said. If SoftBank is willing to take on some of the risk by enabling startups to remain private while they continue to figure things out, that's a good thing, he said.</p>
<p>"I'm a huge fan of what they're trying do, in theory, and I hope it succeeds," Libin said.</p>
<p>Libin also praised SoftBank for having a global outlook, rather than being narrowly focused on investing in San Francisco and Silicon Valley. Among other companies, SoftBank and the Vision Fund have invested in the Chinese ride-hailing company <a href="https://www.businessinsider.com/r-softbank-to-move-ride-hailing-stakes-worth-20-billion-to-vision-fund-ft-2018-4">Didi Chuxing</a>, the India hotel chain Oyo Rooms, and the Brazilian logistics-technology company Loggi.</p>
<p>"There's no reason why you should have to be in Silicon Valley to get access to business capital if you have an idea that could really be world-changing," Libin said.</p>
<p>SoftBank's going to make mistakes, Duda said. And because of the size of the Vision Fund and all of the scrutiny of it, those mistakes will be magnified in the press and in the industry, he said. But SoftBank has smart people and Son has a long-term vision. It's anyone's guess how it will all work out for the Vision Fund and for the rest of the industry, he said.</p>
<p>"In theory, I'm rooting for them," Duda said. "Because if they get involved with our companies, that means the valuation is probably going way up."</p>
<p><em><strong>Got a tip about SoftBank, WeWork, or Uber?</strong> Contact this reporter via email at twolverton@businessinsider.com, message him on Twitter <a href="https://twitter.com/troywolv/">@troywolv</a>, or send him a secure message through Signal at 415.515.5594. You can also <a href="https://www.businessinsider.com/how-to-tip-business-insider-securely-guide-signal-securedrop-2017-6"> contact Business Insider securely via SecureDrop</a>.</em></p>
<ul class="read-more-links">
<li>Read more about SoftBank investment WeWork's planned IPO:</li>
<li><a href="https://www.businessinsider.com/wework-3-trillion-addressable-market-grossly-overstated-experts-say-2019-9" data-read-more-link="" data-e2e-name="read-more-link">WeWork says it has a $3 trillion market opportunity and has signed up only 0.2% of its potential customers. Here's why real-estate experts say those numbers don't add up.</a></li>
<li><a href="https://www.businessinsider.com/wework-most-big-stock-grants-went-to-men-internal-study-2019-8" data-read-more-link="" data-e2e-name="read-more-link"> WeWork gave out 58 stock awards worth at least $1 million each in February, and 94% of them went to men, according to a lawsuit</a></li>
<li><a href="https://www.businessinsider.com/wework-47-billion-private-valuation-could-imperil-its-ipo-2019-8" data-read-more-link="" data-e2e-name="read-more-link"> Why WeWork's $47 billion private valuation could be a key stumbling block for its IPO &mdash; and might even derail it completely</a></li>
<li><a href="https://www.businessinsider.com/wework-47-billion-and-4-billion-lease-disparity-dangerous-recipe-2019-8" data-read-more-link="" data-e2e-name="read-more-link"> 2 big numbers &mdash; $4 billion and $47 billion &mdash; sum up WeWork's business model and the risky reason it could collapse in a recession</a></li>
</ul><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/wework-ipo-s1-shows-real-estate-company-not-tech-firm-2019-8" >WeWork wants investors to think of it as a tech company. These 5 slides illustrate how its numbers tell a different story.</a></strong></p>
<p><a href="https://www.businessinsider.com/softbanks-100-billion-vision-fund-draws-mixed-venture-industry-views-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/why-verizon-att-charge-more-extra-mobile-data-unlimited-plan-2019-6">Here's why phone companies like Verizon and AT&T charge more for extra data</a></p> https://www.businessinsider.com/how-to-find-right-startup-investors-headset-ceo-cy-scott-2019-9The CEO of cannabis-data startup Headset took half a year to meet with dozens of investors before raising a $12 million round. Here's why he says it's so important to find the perfect backers.https://www.businessinsider.com/how-to-find-right-startup-investors-headset-ceo-cy-scott-2019-9
Thu, 12 Sep 2019 12:09:00 -0400Jeremy Berke
<p><img src="https://static3.businessinsider.com/image/5cc88cf1c07da40ca65dba94-880/cy scott headshot.png" border="0" alt="Cy Scott Headshot" data-mce-source="Headset" /></p><p></p>
<ul class="summary-list">
<li>Cy Scott, the CEO of the cannabis-analytics startup Headset, said that he spoke with around 20 to 30 investors over a six month period to <a href="https://www.businessinsider.com/marijuana-analytics-firm-headset-raises-12-million-2019-1">close a $12 million Series A funding round</a>.</li>
<li>Scott walked through his pitching process and shared his best tips <a href="https://www.businessinsider.com/webinar-headset-ceo-walks-through-successful-series-a-pitch-deck-2019-9">in a webinar hosted by Business Insider</a>.&nbsp;</li>
<li><a href="http://newsletter.businessinsider.com/join/cultivated">Sign up for Cultivated, our new weekly cannabis newsletter</a>.</li>
</ul>
<p>Raising money for a startup in a competitive industry like cannabis tech is no easy feat.&nbsp;</p>
<p>Headset, an analytics startup for the nascent marijuana industry,&nbsp;<a href="https://www.businessinsider.com/marijuana-analytics-firm-headset-raises-12-million-2019-1">raised a $12 million Series A round backed by prominent investors earlier this year</a> and has signed deals with the market-research firm Nielsen and the accounting firm Deloitte.</p>
<p>Cy Scott, Headset's CEO, broke down what made his pitch successful in a webinar moderated by Business Insider. He was joined by the brother-and-sister duo Morgan and Emily Paxhia, the <a href="https://www.businessinsider.com/poseidon-asset-management-raising-75-million-for-marijuana-focusd-fund-ii-2018-12">managing partners of the cannabis-focused investment fund Poseidon Asset Management</a>, which led the funding round.</p>
<p>In order to close the round, Scott said he had to put in the work and take a lot of meetings.</p>
<p>In the webinar, Scott said he met with 20 to 30 groups of investors over half a year while he was trying to raise his Series A funding round, "which is basically as many as possible."&nbsp;</p>
<p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/how-to-make-a-successful-pitch-according-to-investors-2019-9">Top investors from a cannabis-focused fund and early Juul investor share their 3 best tips for making a successful pitch</a></em></p>
<p>"This was right out of the gate," Scott said. "Let's do the pitch and see if we're a good fit because it goes both ways."</p>
<p>Thanks in part to all those meetings, Scott ended up raising approximately $6 million more than planned from three venture firms. All in all, Scott estimates it took about six months to close the Series A.&nbsp;</p>
<p>While founders are often hungry for funds, Scott said that the right investor-founder relationship could make or break a startup. You want an investor who's aligned with your vision for the company.&nbsp;</p>
<p>"Obviously, you want to get an investor to provide capital, but you want to make sure that they're the right investor," Scott said.</p>
<p><span style="background-color: #ffff00;"></span>While Scott said he could probably raise funds more quickly the next time around, a side effect from taking all those meetings was building relationships with potential future investors &mdash; even if they passed on the deal the first time.</p>
<p>"It helps to have that rapport," said Scott.&nbsp;</p>
<ul class="read-more-links">
<li><strong>Read more:</strong></li>
<li><a href="https://www.businessinsider.com/cannabis-startups-green-flower-medias-series-a-pitch-deck-2019-6" data-read-more-link="" data-e2e-name="read-more-link">We got an exclusive look at the pitch deck that cannabis education platform Green Flower Media used to raise $20 million from top investors</a></li>
<li><a href="https://www.businessinsider.com/k-zen-5-million-seed-round-pitch-deck-dcm-ventures-2019-9" data-read-more-link="" data-e2e-name="read-more-link">Here's the pitch deck that cannabis-beverage startup K-Zen used to raise $5 million from seasoned Silicon Valley VC firm DCM Ventures</a></li>
<li><a href="https://www.businessinsider.com/cannabis-infused-beverage-startup-cann-seed-round-pitch-deck-2019-6" data-read-more-link="" data-e2e-name="read-more-link">We got an exclusive look at the pitch deck two Ivy League MBAs used to raise a $1.5 million seed round for a cannabis-infused beverage startup</a></li>
<li><a href="https://www.businessinsider.com/how-to-get-a-job-in-cannabis-according-to-top-recruiters-2019-9" data-read-more-link="" data-e2e-name="read-more-link">We spoke with the top recruiters in the booming cannabis business. Here are their 3 best tips for landing your dream job in the industry.</a></li>
</ul><p><a href="https://www.businessinsider.com/how-to-find-right-startup-investors-headset-ceo-cy-scott-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/animated-map-where-american-accents-come-from-2018-5">Animated map shows where American accents came from</a></p> https://www.businessinsider.com/base10-base11-automation-will-upend-venture-capital-2019-9Automation is coming for venture capital, and one young VC firm is betting its homegrown tech gives it an edge over Sand Hill Road's slow-to-adapt legacy investorshttps://www.businessinsider.com/base10-base11-automation-will-upend-venture-capital-2019-9
Thu, 12 Sep 2019 11:00:00 -0400Megan Hernbroth
<p><img src="https://static3.businessinsider.com/image/5d7948dd2e22af01cf5b0cc2-2400/base10.jpg" border="0" alt="Angelica Willis and Rexhi Dollaku" data-mce-source="Base10" data-mce-caption="Base10 head of quantitative research Angelica Willis and principal Rexhi Dollaku" /></p><p></p>
<ul class="summary-list">
<li style="font-weight: 400;"><strong>Base10, an early-stage venture firm that invests in <a href="https://www.businessinsider.com/what-jobs-and-industries-could-be-taken-over-by-robots-2019-4">automation and machine learning technology</a>, announced it was launching an automation tool called Base11 on Thursday.</strong></li>
<li style="font-weight: 400;"><strong>The technology will help automate repeatable portions of venture investment across different office functions, Base10 principal Rexhi Dollaku told Business Insider, and will <a href="https://www.businessinsider.com/more-jobs-created-globally-automation-manpower-report-2019-2">operate as a fully open and independent system</a> instead of the typical "black box" many firms use.</strong></li>
<li style="font-weight: 400;"><strong>Dollaku said about 70% of Base10's portfolio was sourced using the technology behind Base11, which uses publicly available data to help source and do diligence on potential investments.</strong></li>
<li style="font-weight: 400;"><strong>Base10 cofounder and managing partner Adeyemi Ajao told Business Insider that venture firms that don't develop machine learning technology to sift through large quantities of data about potential investments will be out of business in 20 years.</strong></li>
<li><strong><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</strong></li>
</ul>
<p>Venture capital investors have pumped billions of dollars into automation and artificial intelligence technology. But they've been slow to recognize the potential of automation in their own industry.</p>
<p>Base10, a two-year old San Francisco VC firm, wants to change that.&nbsp;</p>
<p>On Thursday, the firm announced a new tool, built in-house, that harnesses the power of AI and applies it to the process of investing in startups. The new tool, which the VC firm calls Base11, taps into publicly available data and automates tasks like sourcing, screening and researching potential deals.&nbsp;</p>
<p>Although intuition and other human traits are critical investing skills that machines can't match, the small team of investors at Base10 believes technology like its Base11 can give them an important leg up over more established VC firms.</p>
<p>"Ten years ago when I arrived in Silicon Valley, this was a cottage business," Base10 cofounder and managing partner Adeyemi Ajao told Business Insider. "If you're a venture firm, if you don't get good at sifting through massive amounts of data, fast, you're not going to be in business in 20 years. We're at the very beginning of understanding how much venture capital is no longer a cottage."</p>
<p><strong>Read More: </strong><a href="https://www.businessinsider.com/greylock-angellist-brendan-baker-ridge-ventures-new-hire-partner-2019-9"><em>An early AngelList alumni is launching a new group at Ridge Ventures that aims to remove personal biases from early-stage tech investing</em></a></p>
<p>Ajao, together with Base10 principal Rexhi Dollaku and head of quantitative research Angelica Willis, explained that Base11 is already functionally operational as a transparent tool the team uses to <a href="https://www.businessinsider.com/more-jobs-created-globally-automation-manpower-report-2019-2">automate repeatable processes across the firm</a>. Instead of a "black box" algorithm that some other venture firms use, Dollaku and Willis said Base11 uses publicly available data about companies or industries the group is interested in investing in. In fact, Dollaku said Base11 is responsible for about 70% of the firm's portfolio.</p>
<p>"A lot of other funds are trying to aggregate as much information as possible and do a lot of innovative things, quote-unquote, but at the end of the day if we have one data point that says that a company is growing, and you have 50 data points that says a company is growing, it doesn't really matter," Dollaku said.</p>
<h2><strong>A solution to venture's diversity problem?</strong></h2>
<p>Of all the chief considerations among Base11, whether or not a founder is part of an <a href="https://www.businessinsider.com/stanford-study-black-vc-firms-racial-bias-illumen-capital-2019-8">underrepresented group is not one of them</a>. This was by design, according to Willis. By removing diversity indicators from consideration, Base10 was open to evaluating the best companies in a given category, full stop.</p>
<p>"That's the beauty of the types of models that we build," Willis said. "If you had some sort of black box system, you're just feeding it a ton of data and you get out what you get out."</p>
<p>She added: "Saying we don't want to consider age or geographic location or maybe we want to upweigh certain geographic locations that are under-represented. We have the ability to do that. We have the control over our modular system."</p>
<p>According to Ajao, the system works. Base10, which focuses primarily on investing in <a href="https://www.businessinsider.com/banking-jobs-remain-popular-despite-the-threat-of-automation-2019-4">automation technology in "unsexy" industries</a>, has mostly invested in companies with a minority or underrepresented CEO, Ajao said. According to him, 60% of the firm's investments are outside the Bay Area, and half of Base10's company founders have working experience in the industry that they're helping automate.&nbsp;</p>
<p>"We don't have a diversity or minority mandate at all," Ajao said. "If you are trying to solve investing problems for the 99%, you need to back people that look like the 99%. If your methodology is sitting in some office on Sand Hill Road, chances are not a lot of those people are going to show up."</p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/accel-amy-saper-investor-early-twitter-and-stripe-employee-2019-9" >Accel is bringing on an early employee from Twitter and Stripe to help find the next generation of passionate, dedicated entrepreneurs</a></strong></p>
<p><a href="https://www.businessinsider.com/base10-base11-automation-will-upend-venture-capital-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/spacex-falcon-heavy-rocket-most-difficult-launch-ever-2019-6">Watch SpaceX's 'most difficult launch ever'</a></p> https://www.businessinsider.com/how-to-make-a-successful-pitch-according-to-investors-2019-9Top investors from a cannabis-focused fund and early Juul investor share their 3 best tips for making a successful pitchhttps://www.businessinsider.com/how-to-make-a-successful-pitch-according-to-investors-2019-9
Wed, 11 Sep 2019 11:07:57 -0400Clarrie Feinstein and Jeremy Berke
<p><img src="https://static5.businessinsider.com/image/5d7905052e22af309f74e562-2004/poseidon headshots134 web.jpg" border="0" alt="Emily Paxhia" data-mce-source="Courtesy of Poseidon Asset Management." data-mce-caption="Emily Paxhia." /></p><p></p>
<ul class="summary-list">
<li><a href="https://www.businessinsider.com/poseidon-asset-management-raising-75-million-for-marijuana-focusd-fund-ii-2018-12">Poseidon Asset Management partners</a> Emily and Morgan Paxhia know a thing or two about what makes a successful pitch.</li>
<li>As partners of one of the most active <a href="https://www.businessinsider.com/top-marijuana-vc-firms-by-deal-count-2018-10">cannabis-specific investment funds</a>, the brother and sister pair have seen countless pitches &mdash; good and bad.</li>
<li><a href="https://www.businessinsider.com/webinar-headset-ceo-walks-through-successful-series-a-pitch-deck-2019-9">In a recent webinar moderated by Business Insider with Headset CEO Cy Scott</a>, the Paxhia's shared their top three tips for how to turn a pitch deck into funding.&nbsp;</li>
</ul>
<p>Brother-and-sister-duo Morgan and Emily Paxhia know what turns a pitch into funding for a startup.</p>
<p>As the managing partners of <a href="https://www.businessinsider.com/poseidon-asset-management-raising-75-million-for-marijuana-focusd-fund-ii-2018-12">Poseidon Asset Management, a cannabis-focused investment firm</a>, the pair have seen &mdash; and sat through &mdash; tons of pitches of varying quality. The two shared their best pieces of advice for startup founders looking to make a successful pitch <a href="https://www.businessinsider.com/webinar-headset-ceo-walks-through-successful-series-a-pitch-deck-2019-9">in a recent webinar moderated by Business Insider</a>.</p>
<p>During the webinar, Cy Scott, the CEO of cannabis analytics startup Headset, <a href="https://www.businessinsider.com/marijuana-tech-startup-headsets-series-a-pitch-deck-2019-4">walked through his Series A funding round pitch</a>. The Paxhia's chimed in on where they thought Scott's pitch stood out.&nbsp;</p>
<p>They would know: Poseidon <a href="https://www.businessinsider.com/marijuana-analytics-firm-headset-raises-12-million-2019-1">led the $12 million funding round, which closed earlier this year</a>.</p>
<p>Here are their three best tips for making a successful pitch:&nbsp;</p>
<h2>Tip #1: Anticipate questions beforehand&nbsp;</h2>
<p>One of Emily Paxhia's first and most important pieces of advice was to pre-empt potential investor questions by doing your homework.</p>
<p>"Anticipate the areas where investors might really poke at in the presentation," said Paxhia. She advises going through the presentation beforehand with investors and mentors to address potential questions investors could ask in the pitch meeting.&nbsp;</p>
<p>"Answer those potential questions before the investor even gets fired up," Emily Paxhia said. "It's a great way to show that you're thinking about the challenges as a founder."&nbsp;</p>
<h2>Tip #2: Think like an investor&nbsp;</h2>
<p>Oftentimes startup founders don't think like investors. If the founder is able to pre-empt questions &mdash; specifically around what would make an investment not work, that's a good sign, the Paxhias said during the webinar.</p>
<p>"You have to think about what could make the investment not work and answer those questions right away in your presentation," Morgan Paxhia said.&nbsp;</p>
<p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/how-big-vc-firms-are-making-their-first-cannabis-investments-2019-8">'It's a once in a decade opportunity': How top VC firms like Greycroft and Lerer Hippeau are cautiously opening their doors to the potentially $194 billion cannabis industry</a></em></p>
<p>In order to make a strong pitch, the Poseidon founders said that a company needs to reflect on their own business, as well as the state of the market and the state of the competitive landscape.</p>
<p>"Those are the big ideas I see missing in a lot of decks," Emily Paxhia said.&nbsp;</p>
<h2>Tip #3: Understand the competitive landscape&nbsp;</h2>
<p>While Scott said companies don't want to address their competition because it can appear to downplay their own strength, knowing the competitive landscape in the industry actually works to a startup's advantage.</p>
<p>"Lots of people say, 'I don't have a competitor,'" Emily Paxhia said. "To me that just shows you haven't taken the time to do the market research on the very space you're entering into to serve."</p>
<p>"Because guess what, I've probably been pitched by your competitor."&nbsp;</p>
<ul class="read-more-links">
<li>Read more:</li>
<li><a href="https://www.businessinsider.com/cannabis-startups-green-flower-medias-series-a-pitch-deck-2019-6" data-read-more-link="" data-e2e-name="read-more-link">We got an exclusive look at the pitch deck that cannabis education platform Green Flower Media used to raise $20 million from top investors</a></li>
<li><a href="https://www.businessinsider.com/k-zen-5-million-seed-round-pitch-deck-dcm-ventures-2019-9" data-read-more-link="" data-e2e-name="read-more-link">Here's the pitch deck that cannabis-beverage startup K-Zen used to raise $5 million from seasoned Silicon Valley VC firm DCM Ventures</a></li>
<li><a href="https://www.businessinsider.com/cannabis-infused-beverage-startup-cann-seed-round-pitch-deck-2019-6" data-read-more-link="" data-e2e-name="read-more-link">We got an exclusive look at the pitch deck two Ivy League MBAs used to raise a $1.5 million seed round for a cannabis-infused beverage startup</a></li>
<li><a href="https://www.businessinsider.com/how-to-get-a-job-in-cannabis-according-to-top-recruiters-2019-9" data-read-more-link="" data-e2e-name="read-more-link">We spoke with the top recruiters in the booming cannabis business. Here are their 3 best tips for landing your dream job in the industry.</a></li>
</ul><p><a href="https://www.businessinsider.com/how-to-make-a-successful-pitch-according-to-investors-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/what-causes-hurricanes-irma-harvey-jose-sahara-africa-easterly-atlantic-2017-9">Most hurricanes that hit the US and Caribbean islands come from the same exact spot in the world</a></p> https://www.businessinsider.com/k-zen-5-million-seed-round-pitch-deck-dcm-ventures-2019-9Here's the pitch deck that cannabis-beverage startup K-Zen used to raise $5 million from seasoned Silicon Valley VC firm DCM Ventureshttps://www.businessinsider.com/k-zen-5-million-seed-round-pitch-deck-dcm-ventures-2019-9
Wed, 11 Sep 2019 09:49:00 -0400Jeremy Berke
<p><img src="https://static6.businessinsider.com/image/5d77c5432e22af06a46b4796-1500/3.jpg" border="0" alt="K-Zen Deck" data-mce-source="K-Zen" /></p><p></p>
<ul class="summary-list">
<li><a href="https://www.businessinsider.com/top-investors-say-these-marijuana-startups-will-blow-up-2019-5">The cannabis-infused-beverage startup</a> K-Zen raised $5 million from the venerable Silicon Valley venture firm DCM Ventures in May.&nbsp;</li>
<li>K-Zen co-CEO Judy Yee told Business Insider that the startup tailored its fundraising approach to investors who would be willing to invest in cannabis, as <a href="https://www.businessinsider.com/how-big-vc-firms-are-making-their-first-cannabis-investments-2019-8">most mainstream venture funds are still reticent about the space</a>.</li>
<li>K-Zen is now in the early stages of raising fresh capital in 2020. Read on to see the full pitch deck that K-Zen used to raise its seed round.</li>
<li><a href="https://www.businessinsider.com/cultivated-week-of-september-6-2019-9">Subscribe here for our weekly cannabis newsletter, Cultivated</a>.</li>
</ul>
<p>For cannabis startups, particularly ones that deal with THC directly, <a href="https://www.businessinsider.com/cannabis-infused-beverage-startup-cann-seed-round-pitch-deck-2019-6">raising money from mainstream investors can be a challenge</a>.</p>
<p>While <a href="https://www.businessinsider.com/legal-marijuana-states-2018-1">cannabis legalization is increasingly sweeping the US</a>, THC is still considered an illegal drug by the federal government. That means that most mainstream venture funds are reluctant to invest in companies that directly sell or cultivate THC-containing products, <a href="https://www.businessinsider.com/marijuana-infused-beverages-600-million-market-2022-2018-9">despite the attractive growth prospects</a>.</p>
<p>For K-Zen, a San Francisco-based cannabis-beverage startup, that wasn't an issue. K-Zen closed a $5 million seed round in May, led by the early-stage fund DCM Ventures. <img style="float:right;" src="https://static4.businessinsider.com/image/5d77f9342e22af12ef1d0a62-2000/img1023.jpg" border="0" alt="Judy Yu, K-Zen" data-mce-source="Courtesy of K-Zen" /></p>
<p>DCM, for its part, has been one of the few prestigious venture funds willing to invest in cannabis. The firm, which manages more than $4 billion, also <a href="https://www.businessinsider.com/eaze-is-raising-50-million-for-cannabis-delivery-2019-8">invested in the cannabis-delivery startup Eaze's $65 million Series C round in November</a>.</p>
<p>K-Zen co-CEO Judy Yee told Business Insider in an interview that she and her co-founder, Soon Yu, did "lots of homework" to figure out which investors to pitch.</p>
<p>Yee said her team looked primarily at investors like DCM that have previously worked on deals in the cannabis space or had signaled they were open to the right opportunity.</p>
<p><em><strong>Read more</strong>:</em> <em><a href="https://www.businessinsider.com/ceo-of-cannabis-tech-startup-headset-advice-for-pitching-investors-2019-9">The CEO of cannabis-tech startup Headset told us why having a concise mission statement is crucial to successfully pitching investors</a></em></p>
<p>"I think by targeting those types of investors, we haven't had to run into a lot of folks saying, 'no, that isn't part of my investment thesis,'" Yee said. "We did that homework up front."</p>
<p>Most mainstream venture firms are locked out of investing in cannabis because their investors, known as limited partners, often <a href="https://www.businessinsider.com/how-big-vc-firms-are-making-their-first-cannabis-investments-2019-8">don't want to invest</a> in the substance.</p>
<p>K-Zen was also helped by the network of Yu, Yee said. Yu attended Stanford's business school with DCM cofounder and general partner David Chao in the early 1990s, and Chao, through DCM, had previously invested in a few startups Yu founded.&nbsp;</p>
<p>When Yee &mdash; who previously held senior positions at Earthbound Farms, Safeway, and Crystal Geyser before taking time off to raise a family &mdash; and Yu were discussing how to build a cannabis brand in K-Zen's very early days, Yee set up a meeting with DCM's Chao to figure out a strategy. <img style="float:right;" src="https://static4.businessinsider.com/image/5d77f90a2e22af132e700f82-2400/img1002.jpg" border="0" alt="Soon Yee" data-mce-source="Courtesy of K-Zen" /></p>
<p>"So that's how everything got started," Yee said. She added that DCM was aligned with her view that beverages were going to be the "form factor" or consumption method that pushed cannabis into the mainstream.&nbsp;</p>
<p>K-Zen recently released a line of THC and CBD-infused "shots" that can be mixed in with beverages. The startup's near-term goals are to "round out" its portfolio with new products, look at new state markets, and ramp up its direct-to-consumer sales, Yee said.</p>
<p>Right now, K-Zen sells products only in California, where cannabis is legal.</p>
<p>"We're looking at this not just as launching one big brand, but really creating a category," Yee said.&nbsp;</p>
<p>K-Zen is also gearing up to raise a new round of funding in 2020.</p>
<p>Yee said the company has started to gauge investor interest and estimated she's had conversations with around seven or eight investors outside DCM.</p>
<p>"We're taking our time," Yee said. "We're getting a sense of the market and where people are at."&nbsp;&nbsp;</p>
<h2>Check out the pitch deck that helped K-Zen raise $5 million here, exclusive to Business Insider:&nbsp;</h2><img src="https://static1.businessinsider.com/image/5d77c4ee2e22af04fd249272-400-300/.jpg" alt="" />
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<br/><br/><h3>Wall Street analysts are bullish on consumer cannabis beverages. Some say the market will near $2 billion in a few short years.</h3>
<img src="https://static2.businessinsider.com/image/5d77c5822e22af057a618f83-400-300/wall-street-analysts-are-bullish-on-consumer-cannabis-beverages-some-say-the-market-will-near-2-billion-in-a-few-short-years.jpg" alt="" />
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<br/><br/><h3>Yee said K-Zen's leadership team brings together experienced people that have led businesses and know to how to fundraise.</h3>
<img src="https://static5.businessinsider.com/image/5d77c6312e22af0a8f339d88-400-300/yee-said-k-zens-leadership-team-brings-together-experienced-people-that-have-led-businesses-and-know-to-how-to-fundraise.jpg" alt="" />
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<br/><br/><h3>"We took a real good look at the marketplace," Yee said. "We looked at what's working, what's not, where are the opportunities, how can we catapult from what's out there today."</h3>
<img src="https://static1.businessinsider.com/image/5d77c6ce2e22af058a6fbf1b-400-300/we-took-a-real-good-look-at-the-marketplace-yee-said-we-looked-at-whats-working-whats-not-where-are-the-opportunities-how-can-we-catapult-from-whats-out-there-today.jpg" alt="" />
<br/><br/><h3>"It's all about execution," Yee said. Consumers have questions about cannabis — and Yee wants K-Zen to help answer, "Does it feel like drinking a glass of wine? How long is it gonna last?"</h3>
<img src="https://static2.businessinsider.com/image/5d77c6ec2e22af0b3021652e-400-300/its-all-about-execution-yee-said-consumers-have-questions-about-cannabis--and-yee-wants-k-zen-to-help-answer-does-it-feel-like-drinking-a-glass-of-wine-how-long-is-it-gonna-last.jpg" alt="" />
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<br/><br/><h3>Eventually, Yee said K-Zen wants to build a "house of brands" under one roof.</h3>
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<br/><br/> https://www.businessinsider.com/accel-amy-saper-investor-early-twitter-and-stripe-employee-2019-9An early employee of Twitter and Stripe is joining Accel to hunt for the next generation of first-time foundershttps://www.businessinsider.com/accel-amy-saper-investor-early-twitter-and-stripe-employee-2019-9
Wed, 11 Sep 2019 08:00:00 -0400Megan Hernbroth
<p><img src="https://static2.businessinsider.com/image/5d77cec62e22af007401b537-2400/2019567amysaper083 1.jpg" border="0" alt="Amy Saper" data-mce-source="Accel" data-mce-caption="Accel principal Amy Saper" /></p><p></p>
<ul class="summary-list">
<li style="font-weight: 400;"><strong>On Wednesday, <a href="https://www.businessinsider.com/crowdstrike-accel-falcon-fund-venture-capital-security-startups-2019-8">Accel</a> announced Amy Saper was joining the early-stage venture firm as a principal with full check-writing ability.</strong></li>
<li style="font-weight: 400;"><strong>Saper was an early marketing employee at Twitter and later <a href="https://www.businessinsider.com/stripe-president-john-collison-on-international-expansion-advertising-2019-4">Stripe, where she helped both companies expand internationally.</a></strong></li>
<li style="font-weight: 400;"><strong>This is Saper's first venture role, but she told Business Insider she worked closely with startups and founders during her time at Stripe.</strong></li>
<li style="font-weight: 400;"><strong>The granddaughter of a nuclear engineer and daughter of a physician, Saper said she grew up in a world where women were encouraged to go into science and technology, something she recognizes not all women experience.</strong></li>
<li><strong><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</strong></li>
</ul>
<p><span style="font-weight: 400;">There's a new face at one of Silicon Valley's biggest venture firms.</span></p>
<p><span style="font-weight: 400;">On Wednesday, </span><a href="https://www.businessinsider.com/crowdstrike-accel-falcon-fund-venture-capital-security-startups-2019-8"><span style="font-weight: 400;">Accel</span></a><span style="font-weight: 400;"> announced Amy Saper was joining the team as a principal. Because of the firm's uncommon structure, Saper may not have a partner title, but she'll have the full check-writing ability and board responsibilities that would be reserved for partner-level investors at Accel's competitors.</span></p>
<p><span style="font-weight: 400;">At the firm, her goal will be to find, and fund, the next generation of entrepreneur. </span></p>
<p><span style="font-weight: 400;">"I'm a first-time investor, so I like to partner with first-time founders," Saper told Business Insider. "That way, we can help and support each other as we both take on these new roles."</span></p>
<p><strong>Read More: </strong><a href="https://www.businessinsider.com/meet-venture-capital-25-rising-stars-in-silicon-valley-2019-7"><em><span style="font-weight: 400;">25 rising stars in venture capital who control millions of dollars in Silicon Valley and decide which startups will blow up</span></em></a></p>
<p><span style="font-weight: 400;">Although this is Saper's first in-house, full-time investing role, it's not the first time she's worked with startups and founders. She was most recently on payment tech company </span><a href="https://www.businessinsider.com/stripe-president-john-collison-on-international-expansion-advertising-2019-4"><span style="font-weight: 400;">Stripe's Atlas team, which helps small businesses simplify the incorporation process</span></a><span style="font-weight: 400;">. Prior to that, she was an early employee at Twitter overseeing international expansion.</span></p>
<p><span style="font-weight: 400;">Indeed, she highlights Stripe president John Collison and Stripe CEO Patrick Collison as examples of the kinds of founders she wants to fund.&nbsp;</span></p>
<p><span style="font-weight: 400;">"I've worked with incredible founders so I know first hand how grueling it can be," Saper said. "I want to find founders with Collison-level perseverance and passion for the problem they are solving."</span></p>
<p><span style="font-weight: 400;">While she was at Stripe, Saper said she saw an impressive talent pool that stretched across the United States and beyond, so she said she's eager to use Accel's influence to fund startups outside of Silicon Valley. She will be loosely focused on early-stage startups in the e-commerce, wellness, and enterprise software spaces, a product of her experience in both consumer and enterprise startups.</span></p>
<p><span style="font-weight: 400;">"I actually think one of the selling points for me about Accel is the ability to work on both [consumer and enterprise investments]," Saper told Business Insider. "There are firms with a wall between consumer and enterprise, but some of the early-stage founders I've advised start by targeting a consumer play and end up pivoting to enterprise."&nbsp;</span></p>
<p><span style="font-weight: 400;">If that's the case, Saper came to the right firm. </span><a href="https://www.businessinsider.com/slack-direct-listening-accel-venture-capital-win-2019-6"><span style="font-weight: 400;">One of Accel's biggest successes in 2019 was workplace chat app Slack</span></a><span style="font-weight: 400;">, which </span><a href="https://www.businessinsider.com/slack-messaging-app-productivity-changing-world-almost-didnt-exist-2015-6"><span style="font-weight: 400;">started as a mobile gaming company</span></a><span style="font-weight: 400;"> before ultimately going public as an enterprise productivity tool. She said that startups like Slack that rely on word-of-mouth growth among employees are particularly appealing to her background working on customer experience.</span></p>
<p><span style="font-weight: 400;">"One of the best indicators of a startup's success is how customers find you," Saper said. "You see it in consumer and enterprise: if you love a product you tell your friends or colleagues about it and the company sees this amazing organic growth."</span></p>
<p><span style="font-weight: 400;">The other winning factor? Representation, Saper said. Her grandmother was a nuclear engineer and her mother was a physician, but she realizes that not all women were encouraged to participate in science and technology during their early years.</span></p>
<p><span style="font-weight: 400;">"I'm incredibly passionate about getting more women involved in all parts of tech ecosystem," Saper said. "As a third generation woman in science and technology, I grew up in a world where that was normal."</span></p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/brex-first-employee-says-startup-better-than-any-mba-program-2019-9" >A Harvard grad was the first employee at buzzy credit card startup Brex and says the experience was better than any MBA program she could have taken.</a></strong></p>
<p><a href="https://www.businessinsider.com/accel-amy-saper-investor-early-twitter-and-stripe-employee-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/slack-messaging-app-productivity-changing-world-almost-didnt-exist-2015-6">The incredible story behind Slack, the app that's taken over offices everywhere</a></p> https://www.businessinsider.com/pitch-decks-that-helped-hot-startups-raise-millions-2019-4PITCH-DECK LIBRARY: The pitch decks that helped hot startups raise millionshttps://www.businessinsider.com/pitch-decks-that-helped-hot-startups-raise-millions-2019-4
Tue, 10 Sep 2019 16:36:00 -0400Business Insider
<p><img src="https://static1.businessinsider.com/image/5c76b2fe26289836dc548cd6-2400/gettyimages-495486464.jpg" border="0" alt="Peter Thiel" data-mce-source="Gettty/Neilson Barnard" /></p><p></p>
<ul class="summary-list">
<li><strong>Billions of dollars are invested in startups every year.</strong></li>
<li><strong>Whether a startup seeks to raise money from angel investors, venture-capital firms, or other backers, the presentation &mdash; or "pitch" &mdash; about the business is critical.</strong></li>
<li><strong>The most effective pitch decks deftly weave data, imagination, and storytelling in a captivating slide presentation.</strong></li>
<li><strong>Business Insider regularly interviews startups about fundraising strategies and collects the pitch decks that helped them raise funding. <a href="https://www.businessinsider.com/subscription/prime?r=slide-library">You can read them all by subscribing to BI Prime.</a></strong></li>
</ul>
<p>Following is a list of some recent startup pitch decks published by Business Insider, organized by the funding round that each deck was used for:</p>
<h2>Seed</h2>
<ul>
<li><strong style="color: #222222;"><strong style="color: #222222;">AceUp: </strong></strong><a href="https://www.businessinsider.com/aceup-seed-funding-pitch-deck-2019-7" data-analytics-position="1">Here's the pitch deck that's helping this 28-year-old first-time entrepreneur raise over $2 million in seed funding to make professional coaching more accessible</a></li>
<li><strong style="color: #222222;">Airbnb: </strong><a href="https://www.businessinsider.com/airbnb-a-13-billion-dollar-startups-first-ever-pitch-deck-2011-9?r=slide-library">The first investor pitch deck for $31 billion startup Airbnb, which has raised over $3 billion and is nearing an IPO</a></li>
<li><strong>Alto:&nbsp;</strong><a href="https://www.businessinsider.com/alto-pitch-deck-raised-seed-round-tony-james-2019-9">This is the pitch deck that helped convince Blackstone's Tony James, NerdWallet's cofounder, and Sequoia Capital to invest in the seed round of a startup disrupting retirement investments</a></li>
<li><strong><strong>Careem: </strong></strong><a href="https://www.businessinsider.com/careem-pitch-deck-from-7-years-before-uber-acquisition-2019-6?r=slide-library">Here's the pitch deck Careem used to secure its first round of venture capital, which led its first investors to a 100x return when Uber bought the company this year</a></li>
<li><strong>Foursquare:</strong> <a href="https://www.businessinsider.com/this-is-the-first-pitch-deck-foursquare-ever-showed-investors-2011-12?r=slide-library">Foursquare is 10 years old and has raised over $240 million. Here's what the startup's first investor pitch deck looked like in 2009, before it raised any money.</a></li>
<li><strong>Holloway: </strong><a href="https://www.businessinsider.com/holloway-seed-funding-pitch-deck-nea-2019-7">Here's the pitch deck that Holloway used to raise $4.6 million from NEA and the New York Times for its online 'how-to' manual business</a><strong><br /></strong></li>
<li><strong>Include:</strong> <a href="https://www.businessinsider.com/include-pitch-deck-2019-5?r=slide-library">The deck a 23-year-old Croatian entrepreneur used to raise 2 million euros to turn its smart benches into a worldwide ad network</a></li>
<li><strong>K-Zen:</strong><a href="https://www.businessinsider.com/k-zen-5-million-seed-round-pitch-deck-dcm-ventures-2019-9?r=slide-library">Here's the pitch deck that cannabis beverage startup K-Zen used to raise $5 million from seasoned Silicon Valley VC firm DCM Ventures</a></li>
<li><strong>Octi: </strong><a href="https://www.businessinsider.com/octi-pitch-deck-augmented-reality-2019-4?r=slide-library" data-analytics-position="1">The deck an LA entrepreneur used to raise $7 million for his new social-network idea</a></li>
<li><strong style="color: #222222;">Osano:</strong> <a href="https://www.businessinsider.com/osano-pitch-deck-2019-3?r=slide-library">The deck a Texas entrepreneur used to raise millions for a startup inspired by Zuckerberg's congressional testimony</a></li>
<li><strong>Pillar: </strong><a href="https://www.businessinsider.com/pillar-pitch-deck-kleiner-perkins-seed-2019-5?r=slide-library">The deck that Pillar, a student-loan-management startup, used to score $5.5 million from Kleiner Perkins and an A-list of Silicon Valley backers</a></li>
<li><strong>Public Goods:</strong> <a href="https://www.businessinsider.com/public-goods-marketplace-funding-pitch-deck-2019-5?r=slide-library">This deck helped a New York startup raise millions to build a direct-to-consumer marketplace that fills the gap between Amazon and Walmart</a></li>
<li><strong>The Predictive Index: </strong><a href="https://www.businessinsider.com/predictive-index-used-this-pitch-deck-to-raise-50-million-2019-5?r=slide-library">This deck </a><a href="https://www.businessinsider.com/predictive-index-used-this-pitch-deck-to-raise-50-million-2019-5?r=slide-library">helped</a><a href="https://www.businessinsider.com/predictive-index-used-this-pitch-deck-to-raise-50-million-2019-5?r=slide-library"> a 65-year-old company raise $50 million, and show investors why its personality-testing service was suddenly growing like a hot startup</a></li>
<li><strong>Swit</strong>: <a href="https://www.businessinsider.com/swit-pitch-deck-to-raise-6-million-for-enterprise-app-2019-7?r=slide-library">Here's the pitch deck that convinced investors to pour $6 million into a startup trying to take on Slack and Asana despite entering the market years late</a></li>
<li><strong style="color: #222222;"><span style="color: #000000;">Uber:</span></strong> <a href="https://www.businessinsider.com/uber-original-pitch-deck-shows-evolution-ipo-2018-12?r=slide-library">Uber's original deck from a decade ago shows just how much the ride-hailing giant has changed</a></li>
<li><strong style="color: #222222;">UpTop:</strong> <a href="https://www.businessinsider.com/uptop-raised-55-million-with-this-pitch-deck-for-its-rental-service-2019-4?r=slide-library">The deck a New York startup used to raise $5.5 million to expand its apartment-rental service</a></li>
<li><strong>Winnie: </strong><a href="https://www.businessinsider.com/winnie-pitch-deck-childcare-millennial-parents-2019-5?r=slide-library">The deck that raised millions for 2 ex-Googlers whose startup helps new millennial parents find childcare</a></li>
<li><strong>Zestful: </strong><a href="https://www.businessinsider.com/zestful-pitch-deck-2019-2?r=slide-library">The deck that helped employee-rewards startup Zestful raise a $1.2 million seed round before it had any customers</a></li>
</ul>
<h2>Series A</h2>
<ul>
<li><strong style="color: #222222;"><strong style="color: #222222;">Alyce: </strong></strong><a href="https://www.businessinsider.com/pitch-deck-for-corporate-gifting-startup-alyce-series-a-2019-8" data-analytics-position="14" data-analytics-module="featured_post">Here's the pitch deck that helped this Boston-based entrepreneur raise over $11 million to help sales reps form better relationships with clients through gifts</a></li>
<li><strong style="color: #222222;">Amify:</strong> <a href="https://www.businessinsider.com/amify-raised-57-million-with-this-pitch-deck-2019-3?r=slide-library">The pitch deck a Virginia startup used to raise $6 million after 7 years of bootstrapping its business</a></li>
<li><strong>Arcus:</strong> <a href="https://www.businessinsider.com/arcus-pitch-deck-fintech-startup-2019-7">The buzzy fintech startup Arcus has raised nearly $13 million. Here's the pitch deck that's helping it woo top VCs like Andreessen Horowitz.</a></li>
<li><strong>Bind:</strong><a href="https://www.businessinsider.com/health-insurance-startup-bind-pitch-deck-to-employers-customers-2019-6">We got a look at the slide deck of Bind, a startup that's raised $70 million to upend the way we pay for healthcare</a></li>
<li><strong style="color: #222222;">Day One Ventures:</strong> <a href="https://www.businessinsider.com/day-one-ventures-pitch-deck-2019-3?r=slide-library">The deck a 29-year-old Russian-born VC used to persuade investors to contribute millions to her fund</a></li>
<li><strong>Divvy: </strong><a href="https://www.businessinsider.com/divvy-series-a-investor-deck-2019-2?r=slide-library">The investor deck that helped the real-estate startup Divvy raise a $30 million Series A led by Andreessen Horowitz</a></li>
<li><strong>Headset:</strong> <a href="https://www.businessinsider.com/marijuana-tech-startup-headsets-series-a-pitch-deck-2019-4?r=slide-library">We got an exclusive look at the pitch deck buzzy marijuana tech startup Headset used to raise $12 million and ink deals with Nielsen and Deloitte</a></li>
<li><strong>Hometalk:</strong> <a href="https://www.businessinsider.com/hometalk-pitch-deck-do-it-yourself-diy-2019-4?r=slide-library">The deck a New York startup used to raise $15 million to expand the services it offers its community of 17 million DIYers</a></li>
<li><strong>Pixeom:</strong> <a href="https://www.businessinsider.com/pitch-deck-edge-computing-startup-pixeom-used-to-raise-15-million-2019-5?r=slide-library">The deck a Silicon Valley startup used to raise $15 million to promote its edge-computing service</a></li>
<li><strong>Recogni:</strong> <a href="https://www.businessinsider.com/recogni-pitch-deck-25-million-to-produce-its-ai-chip-2019-8">This founder's startup developed a super-efficient chip to help self-driving cars 'see' the world around them. Here's the pitch deck it used to raise $25 million to get the chip in production.</a></li>
<li><strong>Sandbox VR:</strong> <a href="https://www.businessinsider.com/sandbox-vr-andreessen-horowitz-pitch-deck-2019-5?r=slide-library">Check out the deck that Sandbox VR used to get Andreessen Horowitz as lead investor in a $68 million round, and watch the investors discuss the pitch</a></li>
<li><strong>Seedo:</strong> <a href="https://www.businessinsider.com/seedo-pitch-deck-weed-machines-2019-7">Here's the pitch deck that's helped this Israeli tech company raise $11 million in private funding to build automatic, at-home weed growing machines</a></li>
<li><strong style="color: #222222;">Sempre Health:&nbsp;</strong><a href="https://www.businessinsider.com/sempre-health-pitch-deck-strategy-drug-coupons-medication-adherence-2019-5?r=slide-library">We got a look at the pitch deck of buzzy Silicon Valley health-tech startup Sempre Health. It reveals how a $4 billion industry is ripe for disruption.</a></li>
<li><strong style="color: #222222;">Skymind:</strong> <a href="https://www.businessinsider.com/skymind-raised-115-million-with-this-pitch-deck-2019-3?r=slide-library">The deck AI startup Skymind used to scoop up $11.5 million in funding</a></li>
<li><strong>Strong Roots: <a href="https://www.businessinsider.com/strong-roots-investor-pitch-deck-for-series-a-raise-and-us-expansion-2019-9?r=US&amp;IR=T">Here's the monster 47-slide pitch deck this buzzy vegan startup used to raise $18 million to disrupt the frozen-food market</a></strong></li>
<li><strong>Thinknum: </strong><a href="https://www.businessinsider.com/thinknum-comic-book-pitch-deck-series-a-2019-8">Read the comic book that data analytics startup Thinknum used instead of a pitch deck to win over investors for its $11.6 venture capital round</a><strong><br /></strong></li>
<li><strong>Verbit: </strong><a href="https://www.businessinsider.com/verbit-series-a-pitch-deck-used-to-raise-23-million-funding-2019-4?r=slide-library">The deck this New York startup used to raise $23 million to expand its hybrid transcription service</a></li>
</ul>
<h2>Series B</h2>
<ul>
<li><strong style="color: #222222;"><strong style="color: #222222;">Arrcus: </strong></strong><a href="https://www.businessinsider.com/arrcus-used-this-pitch-deck-to-raise-30-million-arcos-2019-9">Here's the pitch deck this Silicon Valley startup used to raise $30 million to take on Cisco and Arista Networks</a></li>
<li><strong style="color: #222222;">Brex:</strong> <a href="https://www.businessinsider.com/brex-series-b-pitch-deck-fundraising-2018-8?r=slide-library">A buzzy startup raised $57 million from Peter Thiel and Y Combinator using these 19 slides</a></li>
<li><span style="color: #000000;"><strong><span>Capacity: </span></strong><a href="https://www.businessinsider.com/capacity-employee-pitch-competition-david-karandish-answers-ceo-2019-8">This CEO didn't want to go with traditional venture capital, so he challenged his employees to use this pitch deck to find individual investors. They raised $13 million from 70 people.</a><strong><span><br /></span></strong></span></li>
<li><span style="color: #000000;"><strong><span>Cardinal Analytx:</span></strong><a href="https://www.businessinsider.com/cardinal-analytx-pitchdeck-series-b-led-kleiner-perkins-john-doerr-2019-6">We got a look at the pitch deck that buzzy AI startup Cardinal Analytx used to raise a $22 million round led by famed investor John Doerr</a></span></li>
<li><span style="color: #000000;"><strong>Clearbanc: </strong><a href="https://www.businessinsider.com/clearbanc-pitch-deck-series-b-venture-funding-2019-7">See the pitch deck that nabbed Clearbanc, a startup that provides funding to other startups, $300 million in Series B financing less than a year after its first venture round</a><strong><br /></strong></span></li>
<li><span style="color: #000000;"><strong>Devoted Health:&nbsp;</strong><a href="https://www.businessinsider.com/devoted-series-b-slide-deck-revenue-and-margin-projections-2019-2?r=slide-library">We got a look at the deck that buzzy startup Devoted Health used to hit a $1.8 billion valuation before it signed up any customers</a></span></li>
<li><strong>DivvyCloud</strong>: <a href="https://www.businessinsider.com/pitch-deck-divvycloud-used-to-raise-19-million-series-b-vc-funding-2019-5?r=slide-library">The deck Virginia's DivvyCloud used to raise $19 million in VC funding</a></li>
<li><strong>Front:</strong> <a href="https://www.businessinsider.com/startup-pitch-deck-front-fundraising-venture-2018-6?r=slide-library"><span style="color: #000000;">A hot startup raised $66 million in 5 days using these 24 slides</span></a></li>
<li><strong>HealthJoy: </strong><a href="https://www.businessinsider.com/healthjoy-seed-and-series-a-pitch-deck-revenue-model-projections-2019-4?r=slide-library">We got a look at the pitch decks that buzzy $40 million startup HealthJoy used to snag early investors and then execute a huge strategic shift</a></li>
</ul>
<h2><span style="color: #000000;">Series C</span></h2>
<ul>
<li><span style="color: #000000;"><span style="color: #000000;"><strong>Fungible: </strong><a href="https://www.businessinsider.com/fungible-series-c-softbank-pitch-deck-2019-6">A founder of Juniper Networks and a co-creator of Apple's Mac operating system used this hand-written pitch deck to raise $200 million from SoftBank for their new data center startup</a><strong><br /></strong></span></span></li>
<li><span style="color: #000000;"><span style="color: #000000;"><strong>Kong:</strong> <a href="https://www.businessinsider.com/san-francisco-startup-kong-pitch-deck-raise-43-million-2019-4?r=slide-library">Kong is capitalizing on one of the big trends in software. Here's the pitch deck it used to raise $43 million to build out its service.</a></span></span></li>
<li><strong>Lola.com:</strong> <a href="https://www.businessinsider.com/lola-series-c-pitch-deck-raised-37-million-2019-4?r=slide-library">The deck corporate-travel service Lola.com used to raise $37 million in funds</a></li>
<li><strong style="color: #222222;">OpenFin:</strong> <a href="https://www.businessinsider.com/openfin-series-c-pitch-deck-for-17-million-2019-5?r=slide-library">The deck that hot Wall Street startup OpenFin used to raise $17 million from Barclays and Wells Fargo</a></li>
<li><strong style="color: #222222;">Trumid:</strong> <a href="https://www.businessinsider.com/trumid-pitch-deck-for-peter-thiel-george-soros-2019-2?r=slide-library">The deck Trumid, a Wall Street trading startup backed by George Soros and Peter Thiel, used to raise $53 million</a></li>
</ul>
<h2><strong style="color: #222222;">Series D</strong></h2>
<ul>
<li><strong style="color: #222222;">Carta:</strong> <a href="https://www.businessinsider.com/henry-ward-pitch-deck-that-helped-raise-150-million-2019-2?r=slide-library">The investor deck that $800 million startup Carta used to raise $150 million in venture capital</a></li>
<li><strong>Signpost:</strong> <a href="https://www.businessinsider.com/signpost-raised-52-million-with-pitch-deck-for-sales-service-2019-8">This New York tech founder's startup raised $52 million to save small businesses from nightmare Yelp reviews. Here's his pitch deck.</a></li>
<li><strong>SmartRecruiters:</strong> <a href="https://www.businessinsider.com/pitch-deck-smartrecruiters-series-d-2019-5?r=slide-library">Recruiting-software startup SmartRecruiters raised $50 million at a valuation above $300 million. See the deck that sold Insight Ventures on leading the startup's Series D.</a></li>
</ul>
<h2>Series E</h2>
<ul>
<li><strong>Cloudian:</strong> <a href="https://www.businessinsider.com/cloudian-pitch-deck-2019-4?r=slide-library">The deck that helped an enterprise storage company raise a $94 million round of Series E funding</a></li>
<li><strong>ThoughtSpot:</strong> <a href="https://www.businessinsider.com/thoughtspot-pitch-deck-248-million-salesforce-tableau-2019-8">Here's the pitch deck $1.95 billion ThoughtSpot used to raise $248 million for an AI-powered analytics tool that's challenging Salesforce's Tableau</a></li>
</ul><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/entrepreneurship-guide-pitch-deck-startup-venture-capitalist-raise-money-2019-3" >The first-time founder's ultimate guide to pitching a VC</a></strong></p>
<p><a href="https://www.businessinsider.com/pitch-decks-that-helped-hot-startups-raise-millions-2019-4#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/area-51-american-conspiracy-theories-aliens-history-animation-video-2017-7">How Area 51 became the center of alien conspiracy theories</a></p> https://www.businessinsider.com/thrive-capital-5-million-seed-round-employee-benefits-startup-zestful-2019-9Zestful is helping startups compete with Google and Facebook in the talent-hiring warshttps://www.businessinsider.com/thrive-capital-5-million-seed-round-employee-benefits-startup-zestful-2019-9
Tue, 10 Sep 2019 07:00:00 -0400Megan Hernbroth
<p><img src="https://static2.businessinsider.com/image/5d7690022e22af71e75c0a2f-2004/mat tall.jpg" border="0" alt="Mat Vogels" data-mce-source="Zestful" data-mce-caption="Zestful founder and CEO Mat Vogels" /></p><p></p>
<ul class="summary-list">
<li style="font-weight: 400;"><strong>Zestful, a startup that lets other small startups offer employee benefits and perks, announced on Tuesday it raised $5 million in seed funding led by Thrive Capital.</strong></li>
<li style="font-weight: 400;"><strong>Zestful founder and CEO Mat Vogels told Business Insider that he saw firsthand that startups in San Francisco's Bay Area struggled to <a href="https://www.businessinsider.com/y-combinator-michael-seibel-startups-distance-themselves-google-facebook-2019-8">compete with tech behemoths like Google and Facebook</a> that are known for top-tier employee benefits and perks in the <a href="https://www.businessinsider.com/tech-cash-protect-software-valuations-more-acquisitions-2018-12">red-hot employment market</a>.</strong></li>
<li style="font-weight: 400;"><strong>While <a href="https://www.businessinsider.com/silicon-valley-venture-capital-founders-market-notion-funding-2019-8">not out of place these days in Silicon Valley</a>, the round is one of the largest early funding rounds for a Colorado startup, where Zestful is based.&nbsp;</strong></li>
<li style="font-weight: 400;"><strong>Vogels said investors knew the sizable round would last the startup longer than if they relocated to San Francisco, and that helped get their buy-in for the round.</strong></li>
<li><strong><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</strong></li>
</ul>
<p>Startups are starting to feel the hiring crunch brought on by an <a href="https://markets.businessinsider.com/news/stocks/6-economic-indicators-that-give-insight-us-economy-release-dates-2019-9-1028506230">all-time-low unemployment rate</a> and a <a href="https://www.businessinsider.com/tech-cash-protect-software-valuations-more-acquisitions-2018-12">healthy ecosystem with plenty of cash</a> floating around.&nbsp;</p>
<p>It's not enough to compete for talent on salary and stock options anymore &mdash; early startups are expected to offer the full suite of benefits that gained popularity with the <a href="https://www.businessinsider.com/y-combinator-michael-seibel-startups-distance-themselves-google-facebook-2019-8">rise of tech behemoths like Google and Facebook</a>. But early startups relying on limited funds can't shell out for a fleet of private commuter buses or daily catered meals. Enter Zestful.</p>
<p>Zestful lets small companies like startups pay a monthly fee to offer employees a variety of perks and benefits, like monthly subscriptions to Netflix or the email service Superhuman. On Tuesday, the 3-year-old startup announced it raised $5 million in seed funding led by Thrive Capital, with participation from Box Group, Y Combinator, Matchstick Ventures, Third Kind Capital, and Shrug Capital.</p>
<p>"A Series A says you figured it out, and you're doubling down on the growth phase, and to me, that means we are doubling down on trying to be everywhere," Zestful founder and CEO Mat Vogels told Business Insider. "But sticking with seed funding means we want to focus on the product and build it before we go with a Series A."</p>
<p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/brex-first-employee-says-startup-better-than-any-mba-program-2019-9">A Harvard grad was the first employee at buzzy credit card startup Brex and says the experience was better than any MBA program she could have taken.</a></em></p>
<h2><strong>New workforce, new rules</strong></h2>
<p>Vogels said he had seen the competition firsthand when he was working in San Francisco's Bay Area, as startups struggled to attract and retain talent. He said that those first hires are the most important to the company's success, but it's easier than ever for talented employees to take higher paying or more flexible roles at other companies if the startup can't keep up.</p>
<p>"We may not have all the bells and whistles and features, but what we've built is for the employees, and we have the numbers to back it up," Vogels said. "That's what the head of HR or People Ops care about most. They want people to be happy with it."&nbsp;</p>
<p>As the workforce gets younger, Vogels says that employees will demand personalized benefits like those in Zestful more and more. Gen Zers and young Millennials see work as an extension of their personal lives instead of being a completely separate endeavor, <a href="https://www.businessinsider.com/generation-z">studies have shown</a>, and they want an employer that recognizes that, Vogels said.</p>
<p>"Millennials don't need a high salary, but the company needs to invest in things they care about," Vogels said. "Employees are not one size fits all, so the benefits shouldn't be either. They just want to feel good and appreciated by the company."</p>
<h2><strong>$5 million can pack more of a punch outside Silicon Valley</strong></h2>
<p>After being initially rejected by <a href="https://www.businessinsider.com/popsql-rahil-sondhi-seed-funding-y-combinator-demo-day-2019-8">Y Combinator's accelerator program</a>, Vogels took Zestful out of the overly competitive San Francisco ecosystem to Denver, where he's built the company over the past three years. Zestful's funding round, <a href="https://www.businessinsider.com/silicon-valley-venture-capital-founders-market-notion-funding-2019-8">which is large for a seed stage, even by Silicon Valley standards</a>, is one of the largest in Colorado history.</p>
<p>"Investors are trying to get out of the coasts and outside of expensive cities," Vogels said. "The $5 million will last us five or 10 times longer than if we were in San Francisco, or New York, or Chicago, and they appreciate that idea because they get more bang for their buck."</p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/brex-first-employee-says-startup-better-than-any-mba-program-2019-9" >A Harvard grad was the first employee at buzzy credit card startup Brex and says the experience was better than any MBA program she could have taken.</a></strong></p>
<p><a href="https://www.businessinsider.com/thrive-capital-5-million-seed-round-employee-benefits-startup-zestful-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/amazon-ceo-jeff-bezos-richest-person-net-worth-billions-2018-12">Jeff Bezos is worth over $160 billion — here's how the world's richest man makes and spends his money</a></p> https://www.businessinsider.com/softbank-will-likely-find-investors-vision-fund-ii-despite-wework-2019-9WeWork and Uber are giving SoftBank a black eye, but that doesn't mean Vision Fund II is in trouble, experts say (UBER)https://www.businessinsider.com/softbank-will-likely-find-investors-vision-fund-ii-despite-wework-2019-9
Tue, 10 Sep 2019 01:52:39 -0400Troy Wolverton
<p><img src="https://static5.businessinsider.com/image/5cdf10a5021b4c1da3697ea7-2000/masayoshi son.jpg" border="0" alt="masayoshi son" data-mce-source="Tomohiro Ohsumi/Getty Images" data-mce-caption="SoftBank Group Corp. Chairman and CEO Masayoshi Son speaks during a press conference on May 9, 2019 in Tokyo, Japan. SoftBank Group announced its financial results for the fiscal year ended March 31, 2019." /></p><p></p>
<ul class="summary-list">
<li><a href="https://www.businessinsider.com/category/softbank">SoftBank</a> has taken a financial and public-relations hit recently from its investments in <a href="https://www.businessinsider.com/category/wework">WeWork</a> and <a href="https://www.businessinsider.com/category/uber">Uber</a>.</li>
<li>Uber's stock price has dropped markedly since its <a href="https://www.businessinsider.com/category/ipo">initial public offering</a>, and WeWork is struggling to line up investors in its public offering, even at a valuation that's less than half what SoftBank placed on it in January.</li>
<li>Even with these setbacks, SoftBank is still likely to find investors in the successor to its $100 billion <a href="https://www.businessinsider.com/category/vision-fund">Vision Fund</a>, venture industry experts said.</li>
<li>The main reason for that: There's plenty of capital floating around that needs to find a home, they said.</li>
<li><a href="https://www.businessinsider.com/heres-the-latest-wework-news-2019-6?utm_source=markets&amp;utm_medium=ingest" target="_blank" rel="noopener">Read all of Business Insider's WeWork coverage here</a>.</li>
</ul>
<p>Uber's and WeWork's well-publicized struggles with public investors may not be a good look for SoftBank, their deep-pocketed backer. But for now, the fallout of those disappointments is likely to be limited, venture-capital experts say.</p>
<p>Investors far and wide still have plenty of capital floating around and are constantly looking for ways to invest it, experts in the venture industry told Business Insider. Venture funds in general still offer an attractive investment, particularly in a time of low and decreasing interest rates. And for investors sitting on massive amounts of money, few institutions have the scale to deploy as much capital as SoftBank has shown with its $100 billion Vision Fund, the experts said.</p>
<p>At its base, investing is a supply-and-demand game, and right now there's a lot of supply in terms of capital, said Dan Malven, a managing director at 4490 Ventures.</p>
<p>"These entities that have so much capital to put somewhere, what are their alternatives?" Malven said. "At that scale, capital is a commodity. It flows to wherever investor returns are."</p>
<p>SoftBank has taken a hit recently on some of its own investments. Last week, CNBC reported that the Japanese conglomerate's stake in Uber <a href="https://www.cnbc.com/2019/09/03/softbank-more-than-600-million-underwater-on-uber.html">was worth $600 million less than what the company had paid for it</a> thanks to <a href="https://www.businessinsider.com/uber-stock-price-hits-new-low-following-second-quarter-earnings-2019-8">the big drop in the ride-hailing firm's shares</a> since its initial public offering in May. Uber's stock closed at $32.24 on Monday, down 28% from its $45 IPO price.</p>
<p>At the same time, WeWork is considering taking a massive haircut to its valuation in an effort to go public. Facing pushback from prospective public investors over its huge losses and questionable governance, the company is considering accepting a market capitalization of $15 billion to $20 billion in an initial public offering &mdash; assuming it goes public at all, <a href="https://www.ft.com/content/111f8e00-d346-11e9-8367-807ebd53ab77">according to the Financial Times</a>. In its most recent private funding round &mdash; a $4 billion investment by SoftBank in January &mdash; the coworking giant was valued at $47 billion.</p>
<p><em><strong>Read this</strong>: </em><a href="https://www.businessinsider.com/wework-pressured-by-softbank-to-shelve-ipo-report-2019-9"><em>WeWork's biggest outside shareholder, SoftBank, is reportedly asking for the IPO to be put on hold because investors don't seem interested</em></a></p>
<h2>WeWork and Uber may show problems with SoftBank's strategy</h2>
<p>Until recently, SoftBank had a lot to crow about with its Vision Fund. As of the end of June, SoftBank's Vision and much smaller Delta funds <a href="https://cdn.group.softbank/en/corp/set/data/irinfo/financials/financial_reports/pdf/2020/softbank_results_2020q1_001.pdf">had seen combined unrealized gains of $16 billion on its investments</a>, including a $3.8 billion gain in the second quarter alone.</p>
<p>But that second-quarter gain included a $1.8 billion investment loss that was due in part to the decline of its stake in Uber. The conglomerate could show a much worse return on its investments in its third-quarter report, given that Uber's stock plunged last month after it reported its earnings and WeWork's reevaluation has happened only in recent days. The combination of those two drops could wipe out a significant portion of SoftBank's total gains.</p>
<p>SoftBank's investment thesis has been based on the assumption that technology is often a winner-take-all or winner-take-most industry. Its strategy has been to invest huge sums of money in mature startups that appear to be the leaders in their respective fields with the idea of helping them cement their dominance without seeming to worry much about those companies' near-term losses or economics.</p>
<p>That strategy isn't all that different from what the venture industry in general adopted in the dot-com boom 20 years ago, said Greg Bohlen, a cofounder of Union Grove Venture Partners.</p>
<p>"The problem is, it just never works," Bohlen said.</p>
<p>When you have so much money flowing into companies, it's often not used efficiently, he said. And the startups' financial results often can't really justify the valuations that have been assigned to them, thanks to all the money that's been invested in them. That disconnect between valuations and financials can be obscured when companies are private &mdash; but not when their results are made public through the IPO process.</p>
<p>With WeWork and Uber, the "chickens are starting to come home to roost" for SoftBank's investment strategy, Bohlen said. When public investors see the disconnect between the financial results and valuation, he continued, "the needle comes off the record."</p>
<h2>SoftBank is trying to raise a second Vision Fund</h2>
<p>Uber's poor showing as a public company to date and WeWork's struggles to even go public are a black eye for SoftBank, venture experts said. And they come at a not particularly ideal time for the company. SoftBank <a href="https://www.cnbc.com/2019/07/26/softbank-vision-fund-2-launches-108-billion-fund-to-invest-in-ai.html">is raising capital for a second Vision Fund</a>, this one planned to be even larger than the first.</p>
<p>SoftBank's paper losses on Uber and prospective losses on WeWork could make it more difficult for it to raise money for the new Vision Fund, venture experts say. Prospective investors in the fund might look for other types of investments or they could demand better terms from SoftBank, such as lower management fees.</p>
<p>"Those are the types of knobs that get turned," said Robert Siegel, a lecturer in management at Stanford Graduate School of Business. "He may have to put sweeteners in place to get the deal closed."</p>
<p>But it would be a mistake to think that even with the Uber and WeWork setbacks that the second Vision Fund is now most likely in jeopardy, Siegel and other venture experts said.</p>
<p>For one thing, it's hard to know right now just how much of a hit it may have taken on WeWork, if any at all. Venture investors, particularly late-stage ones, tend to put all kinds of conditions on their investments that limit their downside if the company's valuation falls. They tend to get paid out first in a sale or can get handed out additional shares in a public offering when they convert their pre-IPO stock to common shares. Often it's hard to say how well a venture investment has actually performed until an IPO or acquisition.</p>
<p>"I'm not sure that they're taking a haircut," said Phil Libin, the cofounder and CEO of the technology incubator All Turtles who was previously an investor with the venture firm General Catalyst.</p>
<h2>Investors are likely to stick with SoftBank</h2>
<p>Even if SoftBank's stake in WeWork has dropped in value, that may not be as harmful as one might think. SoftBank CEO Masayoshi Son invests for the long term and is unlikely to be shaken by near-term setbacks, Siegel said. The question will be whether his limited partners, or LPs, in the Vision Fund have a similar perspective.</p>
<p>"It depends on the LPs," he said. But, he added, "betting against Masa historically has been a bad idea."</p>
<p>But there's reason to think that investors will stick with Son and the Vision Fund. There's just a lot of excess capital floating around looking for a home, the venture investors said. With interest rates falling, the Vision Fund doesn't have to offer super-high returns to be an attractive investment, they said.</p>
<p>"I actually don't think, even with all the issues that SoftBank is having with WeWork, that they will have a problem raising their second Vision Fund for 100 billion," said Jai Das, the president and managing director of Sapphire Ventures.</p>
<p><em><strong>Got a tip about SoftBank, WeWork, or Uber?</strong> Contact this reporter via email at twolverton@businessinsider.com, message him on Twitter <a href="https://twitter.com/troywolv/">@troywolv</a>, or send him a secure message through Signal at 415.515.5594. You can also <a href="https://www.businessinsider.com/how-to-tip-business-insider-securely-guide-signal-securedrop-2017-6"> contact Business Insider securely via SecureDrop</a>.</em></p>
<ul class="read-more-links">
<li>Read more about WeWork's planned IPO:</li>
<li><a href="https://www.businessinsider.com/wework-3-trillion-addressable-market-grossly-overstated-experts-say-2019-9" data-read-more-link="" data-e2e-name="read-more-link">WeWork says it has a $3 trillion market opportunity and has signed up only 0.2% of its potential customers. Here's why real-estate experts say those numbers don't add up.</a></li>
<li><a href="https://www.businessinsider.com/wework-most-big-stock-grants-went-to-men-internal-study-2019-8" data-read-more-link="" data-e2e-name="read-more-link"> WeWork gave out 58 stock awards worth at least $1 million each in February, and 94% of them went to men, according to a lawsuit</a></li>
<li><a href="https://www.businessinsider.com/wework-47-billion-private-valuation-could-imperil-its-ipo-2019-8" data-read-more-link="" data-e2e-name="read-more-link"> Why WeWork's $47 billion private valuation could be a key stumbling block for its IPO &mdash; and might even derail it completely</a></li>
<li><a href="https://www.businessinsider.com/wework-47-billion-and-4-billion-lease-disparity-dangerous-recipe-2019-8" data-read-more-link="" data-e2e-name="read-more-link"> 2 big numbers &mdash; $4 billion and $47 billion &mdash; sum up WeWork's business model and the risky reason it could collapse in a recession</a></li>
</ul><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/wework-ipo-s1-shows-real-estate-company-not-tech-firm-2019-8" >WeWork wants investors to think of it as a tech company. These 5 slides illustrate how its numbers tell a different story.</a></strong></p>
<p><a href="https://www.businessinsider.com/softbank-will-likely-find-investors-vision-fund-ii-despite-wework-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/why-verizon-att-charge-more-extra-mobile-data-unlimited-plan-2019-6">Here's why phone companies like Verizon and AT&T charge more for extra data</a></p> https://www.businessinsider.com/brex-first-employee-says-startup-better-than-any-mba-program-2019-9A Harvard grad was the first employee at buzzy credit card startup Brex and says the experience was better than any MBA program she could have taken.https://www.businessinsider.com/brex-first-employee-says-startup-better-than-any-mba-program-2019-9
Sun, 08 Sep 2019 08:00:00 -0400Megan Hernbroth
<p><img src="https://static2.businessinsider.com/image/5d72c9642e22af434151fa3b-2400/larissa rochafounding member 1.jpg" border="0" alt="Larissa Rocha" data-mce-source="Brex" data-mce-caption="Larissa Rocha was Brex's first employee in June 2017." /></p><p></p>
<ul class="summary-list">
<li style="font-weight: 400;"><strong>Larissa Rocha joined Brex,<a href="https://www.businessinsider.com/brex-unicorn-billion-2018-10"> the buzzy credit card startup that caters to other startups</a>, in 2017 after graduating from Harvard.</strong></li>
<li style="font-weight: 400;"><strong>The Brazilian native met Brex cofounders Henrique Dubugras and Pedro Franceschi while they were building their first startup in Brazil. The group kept in touch even as Dubugras and Franceschi dropped out of Stanford to enter <a href="https://www.businessinsider.com/brex-series-b-pitch-deck-fundraising-2018-8">Y Combinator's accelerator program with what would become Brex</a>.</strong></li>
<li style="font-weight: 400;"><strong>Rocha has held multiple roles at Brex since joining more than two years ago, including sales, customer support, and engineer recruiting. She told Business Insider her time at Brex has been more valuable than any MBA program.</strong></li>
<li style="font-weight: 400;"><strong>The buzzy startup has become the poster child for eye-popping growth and massive valuations in Silicon Valley, having raised more than $316 million in venture funding and achieving a $2.6 billion valuation in just two years, <a href="https://my.pitchbook.com/profile/226102-87/company/profile#comparisons">according to Pitchbook data</a>.</strong></li>
<li><strong><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</strong></li>
</ul>
<p>If timing is everything, Larissa Rocha should teach a master class. And she might, as the new head of community at <a href="https://www.businessinsider.com/brex-unicorn-billion-2018-10">buzzy startup Brex</a>.</p>
<p>Rocha holds the coveted title of Employee No. 1 at <a href="https://www.businessinsider.com/brex-series-b-pitch-deck-fundraising-2018-8">Silicon Valley's hottest startup</a>, a credit card and banking system for other startups. In its two years of existence and Rocha's two years of employment, Brex has raised more than $316 million in venture funding and is worth $2.6 billion, <a href="https://my.pitchbook.com/profile/226102-87/company/profile#comparisons">according to Pitchbook data</a>.</p>
<p>"I don't know what happens after 30 years, but I want to be at Brex for as long as we're building this and I will go wherever Brex takes me. It's my baby and we're here for the long term," Rocha told Business Insider.</p>
<p><strong>Read More:</strong> <a href="https://www.businessinsider.com/brex-series-d-kleiner-perkins-valuation-2019-6"><em>Brex, the credit card for startups, raised $100 million at a $2.6 billion valuation &mdash; more than double what it was worth nine months ago</em></a></p>
<p>Unlike Brex founders Henrique Dubugras and Pedro Franceschi, Rocha took a sensible approach to entrepreneurship. Having grown up in a small town in rural Brazil, she was adamant about finishing her undergraduate degree in economics at Harvard before making the plunge. But she kept in touch with Dubugras and Franceschi, who she said she met while living in Brazil, even after they dropped out of Stanford to join Y Combinator with a new company that would become Brex.</p>
<p>"Henrique and Pedro are definitely a big reason," Rocha said of her decision to come to Brex. "They had that very clear vision of wanting to build something that will improve the world, and that really resonated with me. To have the chance to build that from scratch is so much more exciting and nerve wracking but more fun too."</p>
<h2><strong>Startup school</strong></h2>
<p>Since joining Brex in June 2017, two weeks after graduation, Rocha got to work. She said Dubugras and Franceschi tasked her with building spend models for startups at different stages so they could better predict what limits Brex should offer and what the market would allow.</p>
<p>"Even the ones that raised money, they don't want the credit," Rocha said. "They want just a payment instrument. No one was willing to give them one unless the founder was willing to personally guarantee it. And if you're an immigrant like we were, you don't even have that yet. So they said, okay, that's not right."</p>
<p>Rocha was heads down building a business development team when they noticed the startups' engineering team wasn't growing quickly enough. So Rocha stepped in and built a recruitment process for front end engineers.</p>
<p>"I hadn't even heard of that," Rocha said. "It was also a humbling experience in and of itself, trying to recruit for a company in stealth in the Valley."</p>
<p>Rocha said she built her own mentor network to help navigate the ins and outs of recruiting, and eventually hired a top-notch recruiting team to keep up with the growing company's needs. Then she moved to sales full time, and until recently, said the photo on her phone's lock screen was a screenshot of the first sale she closed.</p>
<p>Since then, she's led and built the customer support team in addition to the recruiting and business development teams. She is helping onboard 20 new hires every other week, and has started building Brex's suite of customer offerings as the <a href="https://www.businessinsider.com/brex-san-francisco-members-only-lounge-2019-3">company plans to expand beyond just corporate credit cards.</a></p>
<p>"I'm very, very grateful to have gone to school," Rocha said. "Having that opportunity to explore a lot of things definitely helped me to learn how to learn. But I think it's more effective than any MBA for me to have these on the ground experience here."</p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/box-starboard-value-acquisition-undervalued-2019-9" >Activist investor Starboard bought a 7.5% stake in Box. Experts say that what comes next could be restructuring, layoffs, and maybe even a big sale to a competitor.</a></strong></p>
<p><a href="https://www.businessinsider.com/brex-first-employee-says-startup-better-than-any-mba-program-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/slack-messaging-app-productivity-changing-world-almost-didnt-exist-2015-6">The incredible story behind Slack, the app that's taken over offices everywhere</a></p> https://www.businessinsider.com/marijuana-tech-startup-headsets-series-a-pitch-deck-2019-4We got an exclusive look at the pitch deck buzzy marijuana-tech startup Headset used to raise $12 million and ink deals with Nielsen and Deloittehttps://www.businessinsider.com/marijuana-tech-startup-headsets-series-a-pitch-deck-2019-4
Sat, 07 Sep 2019 11:44:00 -0400Jeremy Berke
<p><img src="https://static3.businessinsider.com/image/5cc88cf1c07da40ca65dba94-880/cy scott headshot.png" border="0" alt="Cy Scott Headshot" data-mce-source="Headset" /></p><p></p>
<ul class="summary-list">
<li>Headset, an analytics startup for the cannabis industry, <a href="https://www.businessinsider.com/marijuana-analytics-firm-headset-raises-12-million-2019-1">raised a $12.1 million round</a> led by the cannabis-investment fund <a href="https://www.businessinsider.com/poseidon-asset-management-raising-75-million-for-marijuana-focusd-fund-ii-2018-12">Poseidon Asset Management</a>.</li>
<li>Headset CEO Cy Scott <a href="https://www.businessinsider.com/webinar-headset-ceo-walks-through-successful-series-a-pitch-deck-2019-9">walked us through what made his pitch successful in a webinar moderated by Business Insider</a>. Poseidon partners Morgan and Emily Paxhia joined as well.&nbsp;</li>
<li>Check out the pitch deck Scott used to help him land the funding round.&nbsp;</li>
</ul>
<p><a href="https://www.businessinsider.com/pitch-decks-that-helped-hot-startups-raise-millions-2019-4"><img src="https://static1.businessinsider.com/image/5c7430290d15f5669a6e31e2-1200/the pitch banner.png" border="0" alt="the pitch banner" data-mce-source="Samantha Lee/Business Insider" /></a></p>
<p>Fresh off a $12 million raise, Headset CEO Cy Scott is trying to navigate a future filled with as many roadblocks as opportunities.&nbsp;</p>
<p>The Seattle-based analytics startup has so far carved out a lucrative niche in the booming cannabis industry, collecting retail-sales data and providing market intelligence to dispensaries across the country &mdash; but, as Scott told Business Insider in a recent interview &mdash; the only constant in cannabis is that change is inevitable.</p>
<p>Scott broke down <a href="https://www.businessinsider.com/webinar-headset-ceo-walks-through-successful-series-a-pitch-deck-2019-9">what made his pitch deck successful in a webinar moderated by Business Insider</a>. Scott was joined by Poseidon Asset Management partners Emily and Morgan Paxhia, who discussed which parts of Scott's pitch attracted them to invest in the company.&nbsp;</p>
<p>Scott said he pitched 20 to 30 investors over a six-month period in order to nail the round. He learned a lot about what makes a successful pitch in the process, <a href="https://www.businessinsider.com/ceo-of-cannabis-tech-startup-headset-advice-for-pitching-investors-2019-9">specifically that a startup needs to home in on a concise mission statement</a>, and how to make Headset stand out in an increasingly crowded cannabis-tech market.&nbsp;</p>
<p>"The whole industry is just moving at an insane clip," Scott previously told Business Insider. "We don't really know what the future holds. Anybody who tells you that they do with the cannabis industry is just trying to make it up."</p>
<p>What Scott does know, however, is that cannabis companies, and traditional corporations trying to muscle into the cannabis world, are hungry for data and anything that can give them an edge in an increasingly competitive business.&nbsp;</p>
<p>It's a trend that hasn't gone unnoticed in the venture-capital world. Initially targeting $6 million on a $30 million pre-valuation for Headset's Series A funding round, Scott decided to double that funding number to just over $12 million when it raised in January.&nbsp;</p>
<p><strong><em>Read more: </em></strong><em><a href="https://www.businessinsider.com/ceo-of-cannabis-tech-startup-headset-advice-for-pitching-investors-2019-9">The CEO of cannabis-tech startup Headset told us why having a concise mission statement is crucial to successfully pitching investors</a></em></p>
<p>"When we initially went out, we thought six [million] would be enough to get by and reasonable to do in a quick fashion," Scott said. As he hit the fundraising circuit, he found a number of funds that wanted to lead the round, ready to write large checks.</p>
<p>"We started to reevaluate what we could do with more capital," Scott said. "It's always a fine line, you know, raising too much capital. There's the analogy that it's like pouring water on a plant &mdash; just like dumping too much water won't make the plant grow any faster."</p>
<p>Headset raised money from a mix of investors from inside and outside the cannabis world. The round was jointly led by AFI Capital Partners and the cannabis-focused Poseidon Asset Management, with Canopy Rivers (the venture-capital arm of Canadian marijuana giant Canopy Growth) participating.</p>
<p>"We really deprioritized traditional VCs and really prioritized more of the cannabis-related firms just because there's less of that education component," Scott said. Cannabis-specific firms, which generally don't take money from institutions like pension funds that are restricted from investing in cannabis since it's federally illegal in the US, have grown rapidly over the past two years. Their larger competitors from the traditional VC world largely remain boxed-out of the high growth industry.</p>
<h2>Partnering up with Nielsen and Deloitte</h2>
<p>On top of raising $12 million, Headset also inked partnerships with Nielsen, one of the leading market-research firms, as well as the consulting and accounting firm Deloitte.&nbsp;</p>
<p>As more big consumer-packaged-goods (CPG) companies evaluate how to get into the cannabis industry, Scott said Headset's data &mdash; and the platform that its partnerships provide &mdash; would be crucial.</p>
<p>As big CPG companies watched cannabis legalization spread across the US and Canada, they were asking Nielsen questions like, "Where's the opportunity? What's the risk to my business?" Scott said.</p>
<p><em><strong>Read more: </strong><a href="https://www.businessinsider.com/nielsen-dives-into-marijuana-with-headset-partnership-2019-3">Nielsen is diving into marijuana as the world's biggest consumer companies look for an edge in the booming industry</a></em></p>
<p>Nielsen, Scott said, didn't really have a good answer. "So they realized pretty quickly that they needed to go out and find a partner that can bring that type of insight," Scott added.</p>
<p>And while Scott and his team have their hands full after their most recent raise, he's still getting lots of interest from investors. That Rolodex will come in handy in the future.&nbsp;&nbsp;</p>
<p>"Just yesterday I was fielding emails and kind of deferring &mdash; give us 18 months before we start talking &mdash; we just closed this round," Scott said. "If there's a real opportunity to race ahead, we might raise a little earlier, but I'd say 18 to 24 months is a safe bet."&nbsp;</p>
<h2>See below for the pitch deck Headset used to raise $12 million:&nbsp;</h2><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/poseidon-asset-management-raising-75-million-for-marijuana-focusd-fund-ii-2018-12" >An early investor in Juul is raising $75 million to make venture investments in pot companies</a></strong></p>
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<br/><br/> https://www.businessinsider.com/dispensed-business-insider-weekly-healthcare-newsletter-2019-9Dispensed: uBiome gets dumped by CVS, Jeffrey Epstein's wacky plan to sell DNA data, and 19 unicorn startups to watchhttps://www.businessinsider.com/dispensed-business-insider-weekly-healthcare-newsletter-2019-9
Fri, 06 Sep 2019 15:38:00 -0400Erin Brodwin
<p><img src="https://static3.businessinsider.com/image/5d71236b2e22af558e13c7d9-797/ap817704849347.jpg" border="0" alt="cvs pharmacy target" data-mce-source="AP Images / CVS Health" /></p><p></p>
<p>Happy Friday, Sept. 6th!</p>
<p>Bringing you this week's fresh batch of healthcare and biotech news is me, <a href="https://www.businessinsider.com/author/erin-brodwin">Erin Brodwin</a>, subbing for the fabulous <a href="https://www.businessinsider.com/author/lydia-ramsey">Lydia Ramsey</a> while she wraps up her honeymoon festivities.</p>
<p>While my East Coast coworkers mourn the end of summer, the Bay Area is just starting to heat up. Hello, iced coffee &mdash; it's been too long.</p>
<p><strong><em>Are you new to our newsletter? <a href="http://newsletter.businessinsider.com/join/health-insider">Sign up here!</a></em></strong></p>
<p>Earlier this week, buzzy Silicon Valley microbiome startup uBiome <a href="https://www.businessinsider.com/microbiome-startup-ubiome-files-for-bankruptcy-2019-9">filed for Chapter 11 bankruptcy</a>. The company had <a href="https://www.businessinsider.com/ubiome-poop-testing-startup-inside-story-what-happened-timeline-2019-5">previously convinced VCs</a> that testing poop was a business worth $600 million. Among them: Andreessen Horowitz and 8VC, who now own 11% and 20% of uBiome, according to the bankruptcy filing:</p>
<h3><a href="https://www.businessinsider.com/microbiome-startup-ubiome-files-for-bankruptcy-2019-9">Poop-testing startup uBiome was once valued at $600 million by Silicon Valley's top VCs. It just filed for bankruptcy.</a></h3>
<p>Chapter 11 bankruptcy isn't as extreme as other forms of insolvency: uBiome won't be liquidating as it would if it had declared Chapter 7 bankruptcy, for example. Instead, the company is looking for a buyer and attempting to save what it can of the business. That could be tough if uBiome's <a href="https://www.businessinsider.com/ubiome-poop-testing-startup-problems-science-microbiome-2019-8">foundational science is flawed</a>, as insiders previously told me.</p>
<p>Which brings me to my next bit of news: <a href="https://www.businessinsider.com/author/zachary-tracer">Zachary Tracer</a> and I had the <a href="https://www.businessinsider.com/cvs-pharmacy-halts-plans-sell-ubiome-poop-tests-stores-2019-9">scoop</a> on an unfortunate turnout for uBiome's plans for salvation. The company was going to try selling its only product, a test called Explorer, at CVS stores. CVS, however, told us it's <a href="https://www.businessinsider.com/cvs-pharmacy-halts-plans-sell-ubiome-poop-tests-stores-2019-9">not feeling the deal</a>:</p>
<h3><a href="https://www.businessinsider.com/cvs-pharmacy-halts-plans-sell-ubiome-poop-tests-stores-2019-9">uBiome was banking on CVS selling its tests &mdash; but the chain just turned it down</a></h3>
<p>Prospective uBiome buyers face other risks too, as my colleague <a href="https://www.businessinsider.com/author/emma-court">Emma Court</a> <a href="https://www.businessinsider.com/ubiome-bankruptcy-list-of-creditors-with-biggest-claims-2019-9">lays out</a> below. Among them: potentially millions of dollars in refunds from health insurers including Cigna, UnitedHealth, and Kaiser. Three of the claims exceed $1 million:</p>
<section>
<h3><a href="https://www.businessinsider.com/ubiome-bankruptcy-list-of-creditors-with-biggest-claims-2019-9">Some of uBiome's largest creditors are health insurers saying they're owed millions in refunds.</a></h3>
<p><img src="https://static1.businessinsider.com/image/5cf68b5f11e2053be27c01da-2222/ubiome-toilet-paper-1.jpg" border="0" alt="uBiome Toilet Paper 1" data-mce-source="Hollis Johnson / Business Insider" data-mce-caption="The microbiome testing company uBiome has come under scrutiny after an FBI raid." /></p>
</section>
<p>And in non-poop-related news, tooth-straightening darling SmileDirectClub is <a href="https://www.businessinsider.com/investors-in-smiledirectclub-before-initial-public-offering-2019-8">eyeing an IPO</a>. The company's top investors stand to be smiling widely as each of them could <a href="https://www.businessinsider.com/investors-in-smiledirectclub-before-initial-public-offering-2019-8">make billions</a> from the deal, as Lydia and Emma reported on Tuesday:</p>
<section>
<h3><a href="https://www.businessinsider.com/investors-in-smiledirectclub-before-initial-public-offering-2019-8">SmileDirectClub is set to go public at a $7.9 billion valuation. That could make the startup's top investors into billionaires.</a></h3>
</section>
<p><img src="https://static3.businessinsider.com/image/5cd70095021b4c1746639ad3-2223/healthcare mag-11.jpg" border="0" alt="SmileDirectClub teeth whitening" data-mce-source="Hollis Johnson/Business Insider" /></p>
<p>Does SmileDirect's bright news have you wondering what other lucrative startups are trying to transform the way we get care? You're in luck. Check out <a href="https://www.businessinsider.com/healthcare-and-biotech-unicorns-going-into-2019-venture-capital-i2018-12">this round up of leading healthcare unicorns</a> courtesy of Emma and <a href="https://www.businessinsider.com/author/clarrie-feinstein">Clarrie Feinstein</a>:</p>
<section>
<h3><a href="https://www.businessinsider.com/healthcare-and-biotech-unicorns-going-into-2019-venture-capital-i2018-12">The 19 billion-dollar startups to watch that are revolutionizing healthcare in 2019</a></h3>
<p><img src="https://static1.businessinsider.com/image/5c1a6e77e04d620e8b558fa4-1838/1703one medical3847 copy.jpg" border="0" alt="One Medical doctors" data-mce-source="Courtesy One Medical" data-mce-caption="One Medical Doctors at a gathering at the company's San Francisco headquarters." /></p>
</section>
<ul>
<li>19 healthcare startups have reached unicorn status, the $1 billion-and-over valuation mark.</li>
<li>Johnson &amp; Johnson bought robotics surgical company, Auris Health, and health insurance startup Oscar Health announced expansion in 12 new markets for next year.</li>
<li>Some of the billion-dollar healthcare companies like 23andMe, Tempus, and One Medical are worth watching.</li>
</ul>
<p>Speaking of bold plans to revolutionize healthcare, I learned this week that Jeffrey Epstein &mdash; yes, that Jeffrey Epstein &mdash; once had a <a href="https://www.businessinsider.com/jeffrey-epstein-dna-genetics-research-drug-companies-2019-8">plan to sequence people's genes</a> and sell the data to drug companies.</p>
<p>That's according to a document obtained as part of a public records request. After outlining his DNA-sequencing <a href="https://www.businessinsider.com/jeffrey-epstein-dna-genetics-research-drug-companies-2019-8">plan</a>, the late financier added, "I am not a mad man."</p>
<h3><a href="https://www.businessinsider.com/jeffrey-epstein-dna-genetics-research-drug-companies-2019-8">Jeffrey Epstein had a 'Frankenstein'-like plan to analyze human DNA in the US Virgin Islands</a></h3>
<p><img src="https://static1.businessinsider.com/image/5d68163b2e22af21145f8266-1063/gettyimages-589141200.jpg" border="0" alt="jeffrey epstein" data-mce-source="Rick Friedman/Rick Friedman Photography/Corbis via Getty Images" data-mce-caption="Billionaire Jeffrey Epstein in Cambridge, MA on 9/8/04." data-link="https://www.gettyimages.com/detail/news-photo/billionaire-jeffrey-epstein-in-cambridge-ma-on-9-8-04-news-photo/589141200?adppopup=true" /></p>
<p>I don't want you leaving our newsletter with only thoughts of bad news to fill your weekend, so I'll let you in on some more personal news. My dog, Dax (bonus points if you can guess who he's named after), just got off the waitlist at our SF bureau's WeWork. He'll be starting at his new post on Monday.</p>
<p><img src="https://static5.businessinsider.com/image/5d72b0af2e22af189929e494-768/whatsapp image 2019-09-06 at 121555 pm.jpeg" border="0" alt="dax the dog" data-mce-source="Erin Brodwin / Business Insider" /></p>
<p>- Erin</p><p><a href="https://www.businessinsider.com/dispensed-business-insider-weekly-healthcare-newsletter-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/animation-jfk-speech-moon-apollo-nasa-mission-john-f-kennedy-2016-8">JFK's famous 'we choose to go to the moon' speech will make you believe you can do anything</a></p> https://www.businessinsider.com/felicis-ventures-sundeep-peechu-on-cash-pay-healthcare-investments-2019-9A top VC at Felicis Ventures told us why it's betting that cash is king in healthcare as it invests a $300 million fundhttps://www.businessinsider.com/felicis-ventures-sundeep-peechu-on-cash-pay-healthcare-investments-2019-9
Fri, 06 Sep 2019 09:41:00 -0400Emma Court
<p><img src="https://static1.businessinsider.com/image/5cc1f037d1a2f845e75cb398-2223/healthcare mag-6.jpg" border="0" alt="Curology" data-mce-source="Hollis Johnson/Business Insider" /></p><p></p>
<ul class="summary-list">
<li>Healthcare startups are offering products and services that consumers <a href="https://www.businessinsider.com/booming-direct-consumer-healthcare-business-2018-10">can pay for with cash,</a> rather than going through their health insurance.&nbsp;</li>
<li>That's a trend that the venture-capital firm Felicis Ventures is betting on because more patients are going to shop around as health-insurance deductibles grow, Sundeep Peechu, a managing director at Felicis, said.</li>
<li>"Let's say 5% of the market becomes cash pay &mdash; that's a huge amount of spend, and there's going to be many, many large companies that arise there," he said.</li>
<li><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</li>
</ul>
<p>As patients, we're used to pulling out our insurance cards when going to the doctor or picking up a prescription.</p>
<p>But for some new startups, insurance is out &mdash; and cash is in.&nbsp;</p>
<p>The shift is one that the venture-capital firm Felicis Ventures is betting on. These days, even people with health-insurance coverage are increasingly facing high out-of-pocket costs, driving a "cash-pay" market in which consumers will shop around for the best deals, <a href="https://www.felicis.com/team/sundeep/">Sundeep Peechu</a>, a Felicis managing director, told Business Insider.</p>
<p>He predicts that this trend of high-deductible health plans will only grow over the next decade or so and says that it's an opening for VCs like Felicis and startups. Of people who get health insurance through employers, 26% have a deductible of <a href="https://www.kff.org/report-section/2018-employer-health-benefits-survey-summary-of-findings/">at least $2,000</a>, up from just 7% in 2009.</p>
<p><em><strong>Read more: </strong><a href="https://www.businessinsider.com/halle-tecco-new-startup-natalist-reproductive-health-kit-for-women-2019-8">The woman who founded top health-tech VC Rock Health is now launching her first startup, and it shows that a long-neglected market is heating up</a></em></p>
<p>"Let's say 5% of the market becomes cash pay &mdash; that's a huge amount of spend, and there's going to be many, many large companies that arise there," Peechu said.</p>
<h2>Felicis is now looking to invest a $300 million fund</h2>
<p>Peechu has been with Felicis for nearly a decade. The firm has invested in companies like Fitbit, the cancer-testing company Guardant Health, and, more recently, <a href="https://www.businessinsider.com/recursion-pharma-ceo-chris-gibson-on-ai-finding-new-drugs-2019-7">the artificial-intelligence-powered biotech Recursion</a>. Peechu led the Recursion investment, as well as others in <a href="https://www.felicis.com/team/sundeep/">tech startups acquired by Google and Salesforce</a>.&nbsp;</p>
<p>For Felicis, the cash-pay space is "an active area" of investment. One particular business there has captured the firm's interest, but it won't yet disclose which it is, Peechu said.</p>
<p>Broadly, Felicis is focused on up-and-coming areas of healthcare. The VC is investing out of its sixth fund, which comes to just over $300 million, and healthcare has made up about 20 to 30% of prior funds, the Felicis partner Dasha Maggio said.</p>
<p>Felicis has made heavy investments in mental health of late, through such startups as the therapy and coaching provider <a href="https://www.findoctave.com">Octave,</a> Peechu said.&nbsp;</p>
<p>Octave's approach today also largely fits into the cash-pay model. Its therapy sessions, which are run by a licensed therapist or psychologist, range from $180 to $300 per session and are often reimbursed out of network, the company says.&nbsp;<span style="background-color: #ffff00;"></span></p>
<p>There's also interest at Felicis in <a href="https://www.businessinsider.com/anti-aging-longevity-startups-face-fda-obstacle-2019-1">longevity</a>, or how to keep healthy people healthy, an area that traditional pharmaceutical companies don't get involved in, he said.&nbsp;</p>
<h2>Companies are experimenting with cash businesses across healthcare</h2>
<p>Today, companies across healthcare are experimenting with the cash-only model. Some are working on new&nbsp;<a href="https://www.businessinsider.com/direct-primary-care-a-no-insurance-healthcare-model-2017-3">primary-care models</a>, and others deliver <a href="https://www.businessinsider.com/how-one-medical-tia-warby-parker-smiledirectclub-compare-to-traditional-healthcare-2019-4?utm_source=Healthcare%20Insights&amp;utm_campaign=282462300f-20190501%20Digital%20Health%20NL%20%2398&amp;utm_medium=email&amp;utm_term=0_8f02c12568-282462300f-92497921#i-got-my-teeth-cleaned-at-dntl-a-walk-in-dental-bar-6">prescription drugs to your door</a>, taking a consumer's money or credit card instead of working with their health-insurance company.</p>
<p><img style="float:right;" src="https://static4.businessinsider.com/image/5cc202b7fa99af72176d49d7-2000/healthcare mag-1.jpg" border="0" alt="Curology box setup" data-mce-source="Hollis Johnson/Business Insider" />The startup Curology, for instance, prescribes personalized acne treatments by mail and <a href="https://support.curology.com/article/65-health-insurance">does not take insurance</a>. The cost to patients ranges from around $5 to $60 for a two-month supply. (Felicis hasn't invested in Curology, according to PitchBook.)</p>
<p><em><strong>Read more: </strong><a href="https://www.businessinsider.com/how-one-medical-tia-warby-parker-smiledirectclub-compare-to-traditional-healthcare-2019-4?utm_source=Healthcare%20Insights&amp;utm_campaign=282462300f-20190501%20Digital%20Health%20NL%20%2398&amp;utm_medium=email&amp;utm_term=0_8f02c12568-282462300f-92497921">We tried out 7 startups that claim to make it easier and cheaper to go to the doctor. Some fell short of the hype.</a></em></p>
<p>New startups typically think about the space like so: Start in cash pay, then move to getting large employers on board and, finally, on to health insurers, when you have enough customers, Peechu said.&nbsp;</p>
<p>But that might not always be the case, he said.</p>
<p>"With high deductibles, will more and more of medical spend move in that direction? It's not been proven yet; you don't see big companies there," Peechu said. "But our sense is there is an opportunity for that to happen."</p><p><a href="https://www.businessinsider.com/felicis-ventures-sundeep-peechu-on-cash-pay-healthcare-investments-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/mars-home-marsha-ai-spacefactory-3d-printed-nasa-2019-6">Look inside the 3D-printed Mars home that NASA awarded $500,000</a></p> https://www.businessinsider.com/reid-hoffman-hamilton-crypto-rap-battle-video-2019-9Greylock partner Reid Hoffman goes all in on cryptocurrency in a new 'Hamilton'-inspired rap battlehttps://www.businessinsider.com/reid-hoffman-hamilton-crypto-rap-battle-video-2019-9
Thu, 05 Sep 2019 15:34:05 -0400Megan Hernbroth
<p><img src="https://static5.businessinsider.com/image/5a14a911f914c31f008b57f9-800/reid.jpg" border="0" alt="reid hoffman" data-mce-source="Kelly Sullivan/Getty Images"></p><p></p>
<ul class="summary-list">
<li>
<a href="https://www.businessinsider.com/reid-hoffman-career-life-2017-11">Greylock partner Reid Hoffman</a> on Thursday posted a Hamilton-inspired rap battle video about cryptocurrency on LinkedIn.</li>
<li>Hoffman <a href="https://www.linkedin.com/pulse/bitcoin-rap-battle-hamilton-vs-satoshi-reid-hoffman/?trackingId=SbZqhHuPTPemZFfC8ZAcXw%3D%3D">explains in his post</a> that he thinks cryptocurrency is useful as an investment asset, a currency, and a technology, <a href="https://www.businessinsider.com/gen-z-not-buying-cryptocurrency-facebook-libra-2019-6">even though interest in cryptocurrencies has dropped.</a>
</li>
<li>According to a Greylock spokeswoman, Hoffman "hopes the video gets more people talking about crypto and its evolving role in global commerce." Greylock invested in cryptocurrency startup Coinbase in 2017.</li>
<li>You can watch the full video below.</li>
<li>
<a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li>
</ul>
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<iframe width="744" height="419" src="//www.youtube.com/embed/JaMJi1_1tkA" frameborder="0" allowfullscreen></iframe>
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<p> </p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/clothing-resale-app-poshmark-first-investor-pitch-deck-2019-8" >Before it was a smash hit, clothing resale app Poshmark struggled to convince investors that mobile was the future. Here’s the original, 2011 pitch deck that inspired one VC to bet on it.</a></strong></p>
<p><a href="https://www.businessinsider.com/reid-hoffman-hamilton-crypto-rap-battle-video-2019-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/slack-messaging-app-productivity-changing-world-almost-didnt-exist-2015-6">The incredible story behind Slack, the app that's taken over offices everywhere</a></p> https://www.businessinsider.com/here-are-the-top-11-startups-that-died-2019-2019-9Microbiome testing startup uBiome is the fourth largest startup to crash and burn in 2019. Here are the top 11 startups that have crumbled so far this year.https://www.businessinsider.com/here-are-the-top-11-startups-that-died-2019-2019-9
Thu, 05 Sep 2019 15:02:07 -0400Megan Hernbroth
<p><img src="https://static3.businessinsider.com/image/5cd074fd021b4c65944fe669-1200/ubiome thumb 43 1.png" border="0" alt="ubiome thumb 4_3 (1)" data-mce-source="uBiome; Yutong Yuan/Business Insider" data-mce-caption="UBiome founders and former co-CEOs Zac Apte and Jessica Richman" /></p><p></p>
<ul class="summary-list">
<li style="font-weight: 400;"><strong><a href="https://www.businessinsider.com/ubiome-bankruptcy-list-of-creditors-with-biggest-claims-2019-9">Microbiome testing startup uBiome</a> announced Wednesday it was filing for bankruptcy after <a href="https://www.businessinsider.com/microbiome-testing-company-ubiome-suspends-smartgut-smartjane-tests-2019-5">months of controversy and federal investigations into its testing procedures and billing practices</a>.</strong></li>
<li style="font-weight: 400;"><strong><a href="https://my.pitchbook.com/profile/60217-03/company/profile#contact-info">According to data from Pitchbook</a>, uBiome is the fourth-largest startup whose business hit a wall so far in 2019.&nbsp;</strong></li>
<li style="font-weight: 400;"><strong><a href="https://www.businessinsider.com/dreams-of-social-robots-dashed-again-2019-4">Consumer robotics maker Anki</a> was the highest valued startup to go under and announced it was shutting down in May.</strong></li>
<li style="font-weight: 400;"><strong>Here are the top 11 startups that went bust so far in 2019.</strong></li>
<li style="font-weight: 400;"><a href="https://www.businessinsider.com/">Visit Business Insider's homepage for more stories.</a></li>
</ul>
<p>A shadow is falling over Silicon Valley, and some of its most promising startups are crumbling under the pressure.</p>
<p>Just this Wednesday, <a href="https://www.businessinsider.com/ubiome-bankruptcy-list-of-creditors-with-biggest-claims-2019-9">high flying microbiome startup uBiome</a> announced it was filing for bankruptcy after <a href="https://www.businessinsider.com/microbiome-testing-company-ubiome-suspends-smartgut-smartjane-tests-2019-5">months of controversy and federal investigations into its testing procedures and billing practices</a>.</p>
<p>The startup, which claimed to test users' stool samples using cutting edge medical technology, had <a href="https://my.pitchbook.com/profile/60217-03/company/profile#contact-info">raised more than $104 million in private venture capital from top firms like 8VC and Andreessen Horowitz</a>. Before filing Chapter 11 on Wednesday, the buzzy startup was worth more than $600 million, <a href="https://my.pitchbook.com/profile/60217-03/company/profile#contact-info">according to Pitchbook data</a>.</p>
<p><strong>Read More: </strong><a href="https://www.businessinsider.com/silicon-valley-venture-capital-founders-market-notion-funding-2019-8"><em>Raising a series A round used to be a victory lap for startups. Thanks to Softbank, it's become one of the most competitive rounds with the highest stakes.</em></a><strong><br /></strong></p>
<p>But as flame outs go, uBiome is hardly the exception to Silicon Valley's rule. In fact, the company was only the fourth largest to hit a wall so far in 2019. The top 11 startups that either filed for bankrtupcy or shut down entirely raked in more than $889 million in private venture capital during their lifetimes, and range from consumer robotics makers and blockchain startups all the way to comic book inspired monthly subscription boxes.</p>
<p>Although concentrated in California's Silicon Valley, startups around the country were not spared from the financial Grim Reaper. Two Maryland-based startups bit the dust, as did others in Virginia and Boston, Massachusetts.&nbsp;&nbsp;</p>
<p><strong>Here are the 11 most valuable startups that have gone under so far in 2019, according to Pitchbook data.</strong></p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/income-share-agreement-lambda-school-y-combinator-demo-day-2019-8" >Startups want a cut of your future earnings, but one tech investor likens the rise in income share agreements to 'indentured servitude'</a></strong></p>
<h3>11. Tribogenics — X-ray imaging technology</h3>
<img src="https://static6.businessinsider.com/image/56fbd49452bcd05b008b990d-400-300/11-tribogenics--x-ray-imaging-technology.jpg" alt="" />
<p><p><strong>Year founded: </strong>2009</p>
<p><strong>Maximum valuation: </strong>$73.39 million</p>
<p><strong>Amount raised: </strong>$29.7 million</p></p>
<br/><br/><h3>10. bCause — Cryptocurrency investment tool</h3>
<img src="https://static4.businessinsider.com/image/5d714b042e22af04826226e4-400-300/10-bcause--cryptocurrency-investment-tool.jpg" alt="" />
<p><p><strong>Year founded: </strong>2013</p>
<p><strong>Maximum valuation: </strong>undisclosed</p>
<p><strong>Amount raised: </strong>$31.06 million</p></p>
<br/><br/><h3>9. Layer — Enterprise customer experience management software</h3>
<img src="https://static4.businessinsider.com/image/5d714bdb2e22af04a01f5976-400-300/9-layer--enterprise-customer-experience-management-software.jpg" alt="" />
<p><p><strong>Year founded: </strong>2013</p>
<p><strong>Maximum valuation: </strong>$45 million</p>
<p><strong>Amount raised: </strong>$37 million</p></p>
<br/><br/><h3>8. xG Health Solutions — Health data analytics</h3>
<img src="https://static4.businessinsider.com/image/57e57d71b0ef97f0288b798d-400-300/8-xg-health-solutions--health-data-analytics.jpg" alt="" />
<p><p><strong>Year founded: </strong>2013</p>
<p><strong>Maximum valuation: </strong>undisclosed</p>
<p><strong>Amount raised: </strong>$40 million</p></p>
<br/><br/><h3>7. Loot Crate — Comic book inspired monthly subscription boxes</h3>
<img src="https://static1.businessinsider.com/image/5ceed99d11e2051fec72d879-400-300/7-loot-crate--comic-book-inspired-monthly-subscription-boxes.jpg" alt="" />
<p><p><strong>Year founded: </strong>2012</p>
<p><strong>Maximum valuation: </strong>$157.46 million</p>
<p><strong>Amount raised: </strong>$51.53 million</p></p>
<br/><br/><h3>6. Jibo — Artificial intelligence for robotics</h3>
<img src="https://static3.businessinsider.com/image/56ccd9786e97c686008b9291-400-300/6-jibo--artificial-intelligence-for-robotics.jpg" alt="" />
<p><p><strong>Year founded: </strong>2012</p>
<p><strong>Maximum valuation: </strong>$200 million</p>
<p><strong>Amount raised: </strong>$61 million</p></p>
<br/><br/><h3>5. Meta — Augmented reality glasses maker</h3>
<img src="https://static2.businessinsider.com/image/5d714ce32e22af0b3e0f8296-400-300/5-meta--augmented-reality-glasses-maker.jpg" alt="" />
<p><p><strong>Year founded: </strong>2012</p>
<p><strong>Maximum valuation: </strong>$300 million</p>
<p><strong>Amount raised: </strong>$82.67 million</p></p>
<br/><br/><h3>4. uBiome — Microbiome testing and mapping software</h3>
<img src="https://static6.businessinsider.com/image/5ccf4251021b4c3879701812-400-300/4-ubiome--microbiome-testing-and-mapping-software.jpg" alt="" />
<p><p><strong>Year founded: </strong>2012</p>
<p><strong>Maximum valuation: </strong>$600 million</p>
<p><strong>Amount raised: </strong>$104.63 million</p></p>
<br/><br/><h3>3. NovaSom — At-home sleep disorder testing</h3>
<img src="https://static1.businessinsider.com/image/5cb4cd4053c7117d957e8a8e-400-300/3-novasom--at-home-sleep-disorder-testing.jpg" alt="" />
<p><p><strong>Year founded: </strong>1992</p>
<p><strong>Maximum valuation: </strong>$79.24 million</p>
<p><strong>Amount raised: </strong>$113.16 million</p></p>
<br/><br/><h3>2. Munchery — On-demand food delivery</h3>
<img src="https://static4.businessinsider.com/image/5525381e6bb3f7e160345b6b-400-300/2-munchery--on-demand-food-delivery.jpg" alt="" />
<p><p><strong>Year founded: </strong>2010</p>
<p><strong>Maximum valuation: </strong>$300 million</p>
<p><strong>Amount raised: </strong>$123.86 million</p></p>
<br/><br/><h3>1. Anki — Consumer robotics maker</h3>
<img src="https://static1.businessinsider.com/image/5d714de02e22af68713659f4-400-300/1-anki--consumer-robotics-maker.jpg" alt="" />
<p><p><strong>Year founded: </strong>2010</p>
<p><strong>Maximum valuation: </strong>$600 million</p>
<p><strong>Amount raised: </strong>$224.66 million</p></p>
<br/><br/> https://www.businessinsider.com/ubiome-what-we-know-microbiome-startup-fbi-raid-ceos-resigned-2019-7Everything we know about uBiome, the startup that convinced Silicon Valley that testing poop was worth $600 million, and then filed for bankruptcy amid an FBI investigationhttps://www.businessinsider.com/ubiome-what-we-know-microbiome-startup-fbi-raid-ceos-resigned-2019-7
Thu, 05 Sep 2019 13:04:00 -0400Erin Brodwin, Lydia Ramsey and Emma Court
<p><img src="https://static5.businessinsider.com/image/5bf456eee4218a09f7172cb4-2400/qetlc.jpeg" border="0" alt="ubiome 3" data-mce-source="Erin Brodwin" /></p><p></p>
<ul class="summary-list">
<li><a href="https://ubiome.com/">uBiome</a> was founded in 2012 on the promise of <a href="https://www.businessinsider.com/microbiome-gut-bacteria-test-forgotten-organ-future-medicine-ubiome-photos-2018-11">helping ordinary people understand the bacteria</a><span style="color: #222222;"> living in and on them, known as their microbiome.</span></li>
<li>The company eventually raised <a href="https://www.businessinsider.com/ubiome-raises-83-million-and-plans-to-get-into-drug-development-2018-9">$105 million from investors</a> and reached a valuation of $600 million.</li>
<li>In late April, the FBI searched uBiome's office as part of an investigation.</li>
<li>By the end of June, the company's top leadership and many of its board members had <a href="https://www.businessinsider.com/ubiome-leadership-ceo-execs-out-poop-testing-startup-fbi-2019-6">departed</a>.</li>
<li>In September, uBiome <a href="https://www.businessinsider.com/microbiome-startup-ubiome-files-for-bankruptcy-2019-9">filed for bankruptcy protection</a> and said it will try to sell itself.</li>
<li><strong>Business Insider reports regularly on the latest developments at uBiome.<span>&nbsp;</span><a href="https://www.businessinsider.com/subscription/prime?r=ub-lp">You can read our stories by subscribing to BI Prime.</a></strong></li>
</ul>
<p>The Silicon Valley startup <a href="https://www.businessinsider.com/category/ubiome">uBiome</a> was founded in 2012, on the promise of <a href="https://www.businessinsider.com/microbiome-gut-bacteria-test-forgotten-organ-future-medicine-ubiome-photos-2018-11?r=ub-lp">helping ordinary people understand the bacteria</a> living in and on them, known as their microbiome.</p>
<p>The company morphed from citizen science project to venture-backed startup, <a href="https://www.businessinsider.com/ubiome-raises-83-million-and-plans-to-get-into-drug-development-2018-9?r=ub-lp">taking in $105 million from investors</a> and reaching a valuation of $600 million.</p>
<p>Then the troubles began. The FBI raided the company in April, <a href="https://www.wsj.com/articles/ubiome-offices-searched-by-fbi-11556301287">reportedly</a> as part of an investigation into the startup's billing practices. By the end of June, the company's top leadership and many of its board members had <a href="https://www.businessinsider.com/ubiome-leadership-ceo-execs-out-poop-testing-startup-fbi-2019-6">departed</a>. In September, the company <a href="https://www.businessinsider.com/microbiome-startup-ubiome-files-for-bankruptcy-2019-9">filed for bankruptcy</a>.</p>
<p><span><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/ubiome-poop-testing-startup-inside-story-what-happened-timeline-2019-5?r=ub-lp">uBiome convinced Silicon Valley that testing poop was worth $600 million. Then the FBI came knocking. Here's the inside story.</a></em></span></p>
<p>Here's everything we know about what's going on at uBiome.</p>
<h2><strong>The inside story</strong></h2>
<ul>
<li><a href="https://www.businessinsider.com/ubiome-poop-testing-startup-inside-story-what-happened-timeline-2019-5?r=ub-lp" data-analytics-position="2">uBiome convinced Silicon Valley that testing poop was worth $600 million. Then the FBI came knocking. Here's the inside story.</a></li>
<li><a href="https://www.businessinsider.com/ubiome-nurx-birth-control-startup-nyt-expose-2019-6?r=ub-lp">Embattled $600 million poop-testing startup uBiome once partnered with Nurx, a birth control company at the center of a New York Times expos&eacute;</a></li>
<li><a href="https://www.businessinsider.com/ubiome-startup-fbi-raid-jessica-richman-ceo-founders-misled-age-2019-5?r=ub-lp">uBiome's founder repeatedly presented herself as years younger than she was, in the latest sign of trouble at the embattled $600 million poop-testing startup</a><a href="https://www.businessinsider.com/ubiome-board-tapped-milbanks-george-canellos-to-run-investigation-microbiome-startup-2019-5?r=ub-lp"></a></li>
<li><a href="https://www.businessinsider.com/ubiome-startup-letter-to-investors-from-john-rakow-after-fbi-raid-2019-5?r=ub-lp">Here's the letter the $600 million healthcare startup uBiome sent to reassure investors after it was raided by the FBI</a></li>
<li><a href="https://www.businessinsider.com/ubiome-silicon-valley-microbiome-startup-cut-corners-employees-say-2019-5?r=ub-lp" data-analytics-position="7">Silicon Valley startup uBiome raised $105 million on the promise of exploring a 'forgotten organ.' After an FBI raid, ex-employees say it cut corners in its quest for growth.</a></li>
</ul>
<h2><strong>Leadership exits and layoffs</strong></h2>
<ul>
<li><a href="https://www.businessinsider.com/microbiome-startup-ubiome-files-for-bankruptcy-2019-9">Poop-testing startup uBiome was once valued at $600 million by Silicon Valley's top VCs. It just filed for bankruptcy.</a></li>
<li><a href="https://www.businessinsider.com/ubiome-new-board-members-after-fbi-raid-board-departures-2019-7?r=ub-lp">uBiome just added a top bankruptcy lawyer and a turnaround expert to its board as the troubled poop-testing startup grapples with its future</a></li>
<li><a href="https://www.businessinsider.com/poop-testing-startup-ubiome-is-laying-off-114-employees-2019-7?r=ub-lp">Troubled poop-testing startup uBiome is laying off half its staff</a></li>
<li><a href="https://www.businessinsider.com/ubiome-leadership-ceo-execs-out-poop-testing-startup-fbi-2019-6?r=ub-lp">All of uBiome's top execs are out at the embattled poop-testing startup that's at the center of an FBI investigation</a></li>
<li><a href="https://www.businessinsider.com/who-is-on-the-ubiome-board-of-directors-after-fbi-raid-2019-5?r=ub-lp"><span>UBiome's independent directors are ditching the healthcare startup following an FBI raid, and now there's only 1 left</span></a></li>
<li><a href="https://www.businessinsider.com/microbiome-testing-company-ubiome-suspends-smartgut-smartjane-tests-2019-5?r=ub-lp" data-analytics-position="8">A microbiome-testing company that has raised $105 million has suspended its two main tests and put its co-CEOs on leave following an FBI raid</a></li>
</ul>
<h2><strong>Science and poop tests</strong></h2>
<ul>
<li><a href="https://www.businessinsider.com/cvs-pharmacy-halts-plans-sell-ubiome-poop-tests-stores-2019-9?r=ub-lp">Bankrupt poop-testing startup uBiome was banking on CVS selling its tests &mdash; but the chain just turned it down</a></li>
<li><a href="https://www.businessinsider.com/ubiome-poop-testing-startup-problems-science-microbiome-2019-8?r=ub-lp">uBiome insiders say key science at the buzzy startup was flawed from the start. Now, the company and a top science journal are investigating.</a></li>
<li><a href="https://www.businessinsider.com/ubiome-resumes-explorer-testing-after-bringing-back-its-lab-director-2019-7?r=ub-lp">uBiome just restarted lab operations, after the poop-testing startup brought back the lab director it laid off last week</a></li>
<li><a href="https://www.businessinsider.com/ubiome-fbi-raid-large-uninvolved-board-of-scientists-doctors-experts-2019-5?r=ub-lp" data-analytics-position="3">A renowned Harvard geneticist and MacArthur 'genius' were among the 75 scientist advisers for embattled $600 million poop-testing startup uBiome. But 'they were pretty much there for show.'</a></li>
<li><a href="https://www.businessinsider.com/microbiome-gut-bacteria-test-forgotten-organ-future-medicine-ubiome-photos-2018-11?r=ub-lp" data-analytics-position="4">I tried a test from troubled poop-testing startup uBiome that let me peek inside a 'forgotten organ.' Here's what I learned.</a></li>
<li><a href="https://www.businessinsider.com/ubiome-raises-83-million-and-plans-to-get-into-drug-development-2018-9?r=ub-lp">A startup that's helping us better understand the bugs that live in us just raised $83 million to start developing treatments for diseases like cancer</a></li>
</ul>
<h2><strong>Complaints and probes</strong></h2>
<ul>
<li><a href="https://www.businessinsider.com/ubiome-bankruptcy-list-of-creditors-with-biggest-claims-2019-9?r=ub-lp">Poop-testing startup uBiome has filed for bankruptcy. Some of its largest creditors are health insurers saying they're owed millions in refunds.</a></li>
<li><a href="https://www.businessinsider.com/ubiome-poop-testing-startup-fbi-raid-may-owe-entrepreneur-2019-7?r=ub-lp">An entrepreneur who worked with uBiome says the troubled poop-testing startup owes him $600,000</a></li>
<li><a href="https://www.businessinsider.com/ubiome-board-tapped-milbanks-george-canellos-to-run-investigation-microbiome-startup-2019-5?r=ub-lp">UBiome's board just tapped a former federal prosecutor to run an internal investigation after the FBI raided the $600 million Silicon Valley startup</a></li>
<li><a href="https://www.businessinsider.com/customer-complaints-about-ubiomes-microbiome-tests-and-billing-2019-5?r=ub-lp" data-analytics-position="8">Customer complaints show $600 million health startup uBiome has been surprising patients and insurers with bills for years</a></li>
<li><a href="https://www.businessinsider.com/microbiome-testing-startup-ubiome-fbi-raid-2019-4?r=ub-lp">The FBI reportedly just raided microbiome-testing startup uBiome as part of an investigation into improper billing</a></li>
</ul><p><a href="https://www.businessinsider.com/ubiome-what-we-know-microbiome-startup-fbi-raid-ceos-resigned-2019-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/summer-weather-forecast-temperature-prediction-hot-noaa-2019-6">This summer may be hotter than you expect. Here's how hot it will get in every state.</a></p> https://www.businessinsider.com/allbirds-just-water-shoes-for-amazon-wildfire-reliefAllbirds collaborated with Just Water on limited-edition shoes and 100% of the proceeds support Amazon wildfire reliefhttps://www.businessinsider.com/allbirds-just-water-shoes-for-amazon-wildfire-relief
Wed, 04 Sep 2019 14:59:00 -0400Remi Rosmarin
<p><a href="http://shareasale.com/r.cfm?b=999&amp;u=1088116&amp;m=68246&amp;urllink=www.allbirds.com%2Fcollections%2Fjust-water-collection" target="_blank" rel="noopener"><img src="https://static1.businessinsider.com/image/5d6fe4f52e22af2f6b287ea2-1200/waterxallbirds.jpg" border="0" alt="allbirds just water" data-mce-source="Allbirds" /></a></p>
<ul class="summary-list">
<li><a href="http://shareasale.com/r.cfm?b=999&amp;u=1088116&amp;m=68246&amp;urllink=www.allbirds.com%2F" target="_blank" rel="noopener">Allbirds</a> has collaborated with <a href="https://justwater.com" target="_blank" rel="noopener">Just Water</a>, a sustainable food and beverage brand, on two limited-edition styles.</li>
<li>Both brands focus on using natural, sustainable materials in their products, which are showcased in the shoes.&nbsp;</li>
<li>One hundred percent of proceeds from each sale will go to the Amazon Forest Fund to support wildfire relief.&nbsp;</li>
</ul>
<p>For brands, a <a href="https://www.businessinsider.com/b-corp-charitable-business-2018-8" target="_blank" rel="noopener">B Corp</a> title is more than just a label &mdash; it's a commitment to creating a better business by prioritizing a purpose (whether it be social, environmental, or otherwise) greater than profit alone. It's only natural, then, that these companies often use their platforms to respond to broader issues.</p>
<p>Allbirds is one of our favorite B Corps &mdash; not only does it have a great mission as a brand dedicated to sustainability in fashion, it also makes really comfortable shoes. In the wake of the <a href="https://www.businessinsider.com/amazon-rainforest-photos-before-after-wildfires-2019-8" target="_blank" rel="noopener">devastating wildfires in the Amazon</a>, Allbirds paired up with Just Water, an environmentally responsible bottled-water brand (founded by Will and Jaden Smith), to launch two limited-edition styles. The collaboration boasts two fun colorways on the classic <a href="http://shareasale.com/r.cfm?b=999&amp;u=1088116&amp;m=68246&amp;urllink=www.allbirds.com%2Fproducts%2Fmens-tree-toppers" target="_blank" rel="noopener">Tree Toppers</a> and <a href="http://shareasale.com/r.cfm?b=999&amp;u=1088116&amp;m=68246&amp;urllink=www.allbirds.com%2Fproducts%2Fmens-tree-runners" target="_blank" rel="noopener">Tree Runners</a>, and 100% of the proceeds from the collaboration will go to the Amazon Forest Fund (started by Allbirds investor Leonardo DiCaprio) to support wildfire relief.&nbsp;</p>
<h2>The styles&nbsp;</h2>
<p>The Allbirds and Just Water styles celebrate the similarities between the shoe and water brand. You'll find limited-edition colorways of the <a href="http://shareasale.com/r.cfm?b=999&amp;u=1088116&amp;m=68246&amp;urllink=www.allbirds.com%2Fproducts%2Fmens-tree-toppers-just-water" target="_blank" rel="noopener">Tree Topper</a> and <a href="http://shareasale.com/r.cfm?b=999&amp;u=1088116&amp;m=68246&amp;urllink=www.allbirds.com%2Fproducts%2Fmens-tree-toppers-just-water" target="_blank" rel="noopener">Tree Runner</a>, in both men's and women's sizes.&nbsp;</p>
<p><a href="http://shareasale.com/r.cfm?b=999&amp;u=1088116&amp;m=68246&amp;urllink=www.allbirds.com%2Fcollections%2Fjust-water-collection" target="_blank" rel="noopener"><img src="https://static2.businessinsider.com/image/5d6ff1932e22af3243743e49-1200/allbirds.jpg" border="0" alt="allbirds" data-mce-source="Allbirds" /></a></p>
<p>The <a href="http://shareasale.com/r.cfm?b=999&amp;u=1088116&amp;m=68246&amp;urllink=www.allbirds.com%2Fproducts%2Fwomens-tree-runners-just-water" target="_blank" rel="noopener">Just Runners</a> cost $95, while the&nbsp;<a href="http://shareasale.com/r.cfm?b=999&amp;u=1088116&amp;m=68246&amp;urllink=www.allbirds.com%2Fproducts%2Fmens-tree-toppers-just-water" target="_blank" rel="noopener">Just Toppers</a> are $115. Both feature Just Water's signature blue in the accents.</p>
<p>Both the toppers and runners come with a three-piece lace kit, with colors inspired by Just Water's infused water flavors. Additionally, you'll find a small water droplet on the back tabs of each shoe, a sweet nod to Just Water's role in the collaboration.&nbsp;</p>
<p>These limited-edition styles won't cost you any more than a regular pair would, but they will go towards a great cause. If you want to make a purchase you can feel good about, we'd recommend checking these out now.&nbsp;</p>
<h3><a href="http://shareasale.com/r.cfm?b=999&amp;u=1088116&amp;m=68246&amp;urllink=www.allbirds.com%2Fcollections%2Fjust-water-collection" target="_blank" rel="noopener">Shop the Allbirds x Just Water collection here</a></h3><p><a href="https://www.businessinsider.com/allbirds-just-water-shoes-for-amazon-wildfire-relief#comments">Join the conversation about this story &#187;</a></p> https://www.businessinsider.com/biotech-ipo-and-ma-predictions-from-jefferies-analyst-michael-yee-2019-8These 28 biotech startups have attracted the most VC cash, making them prime candidates for an acquisition or IPOhttps://www.businessinsider.com/biotech-ipo-and-ma-predictions-from-jefferies-analyst-michael-yee-2019-8
Tue, 03 Sep 2019 16:59:00 -0400Emma Court and Clarrie Feinstein
<p><img src="https://static3.businessinsider.com/image/5ccca64c021b4c1e4e5ff093-2028/arvinas2108-97.jpg" border="0" alt="Arvinas targeted protein degraders protac tech biotech" data-mce-source="Arvinas" data-mce-caption="The biotech Arvinas focuses on targeted protein technology. Started by a founder of the field, it was the first to begin testing the tech in a research trial in humans." /></p><p></p>
<ul class="summary-list">
<li>Venture-capital money flowing into biotech over the past few years has led to record levels of private financing, according to a new analysis by Jefferies analyst Michael Yee and his team.</li>
<li>Based on industry trends, companies with funding rounds in the past two years could go public next year or in 2021, they said. Those companies could be targets for M&amp;A.</li>
<li>Read on to see the companies with the top 30 fundraising rounds in that time, which could be IPO candidates or M&amp;A targets.</li>
<li><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories.</a></li>
</ul>
<p>It's a good time to be a private biotech company.</p>
<p>Venture-capital funds have been flowing into the industry, prompting record levels of private biotech financings, according to a new analysis from Jefferies analyst Michael Yee and his team.</p>
<p>A large crop of those private companies could be set to go public in 2020 or 2021, or could even get acquired, Yee and team said. "It will also be interesting to see how many of these may lead to M&amp;A instead of IPOs," the Jefferies analysts said.</p>
<p>In the past few months, two private biotechs, cancer drugmaker <a href="https://investors.merck.com/news/press-release-details/2019/Merck-to-Acquire-Peloton-Therapeutics-Bolstering-Oncology-Pipeline/default.aspx">Peloton Therapeutics</a> and cell-therapy company <a href="https://media.bayer.com/baynews/baynews.nsf/id/Bayer-acquires-BlueRock-Therapeutics-to-build-leading-position-in-cell-therapy">BlueRock Therapeutics</a>, were both sold to big pharma companies.</p>
<p>Being a biotech company in the business of developing drugs is <a href="https://www.businessinsider.com/how-to-invest-in-biotech-stocks-fidelitys-eirene-kontopoulos-2019-4">notoriously risky</a> and expensive. Ballooning capital needs can propel biotechs to either go public or sell themselves before they're even selling a single drug.</p>
<p>The Jefferies team's predictions are rooted in what happened in 2017, when private financings gave momentum to a wave of IPOs in <a href="https://www.businessinsider.com/top-biotech-ipos-of-2018-2018-9">2018</a> and <a href="https://endpts.com/with-4-more-biotech-ipos-due-to-wrap-up-q2-how-is-the-class-of-2019-faring/">2019</a>. Since then, the financing trend has expanded, with 40 to 60 private rounds being announced each quarter, an increase from 20 to 30 rounds per quarter in 2017, their analysis found.</p>
<p><em><strong>Read more: <a href="https://www.businessinsider.com/10-digital-health-startups-poised-to-ipo-zocdoc-23andme-heartflow-2019-7" data-analytics-position="5">These 10 buzzy digital health startups are poised to go public in the next year</a></strong></em></p>
<p>Yee and team say this trend reflects the overall strength of VC funds, with large amounts of capital flowing into them and then out to startups. The market has also been strong for biotech companies since the sequencing of the human genome in the early 2000s, and especially since the passage of the landmark healthcare law the Affordable Care Act in 2010, they said.</p>
<p>Well-funded VCs are betting heavily on biotechs based on factors like management teams and innovative ideas, but they're also underestimating how much risk is in the mix, Wedbush analyst David Nierengarten told Business Insider.</p>
<p>"I have seen this trend before and it ends poorly," he said.</p>
<p>The Jefferies analysis, which was released in mid-August, took a look at the top 30 fundraising rounds between May 2017 and August 2019. Since it was posted, two of the companies it tapped have said that they plan to go public.&nbsp;</p>
<p>Read on to for more about the biotechs that made the cut.</p><h3>28. SpringWorks Therapeutics</h3>
<img src="https://static2.businessinsider.com/image/5d1b59e9a17d6c27c2662a42-400-300/28-springworks-therapeutics.jpg" alt="" />
<p><p><strong>Round size and year:</strong><span style="font-weight: 400;"> $125 million in 2019&nbsp;</span></p>
<p><strong>More about SpringWorks Therapeutics:</strong><span style="font-weight: 400;"> &nbsp;</span><a href="https://www.businessinsider.com/pfizer-spins-out-springworks-therapeutics-with-103-million-in-funding-2017-9"><span style="font-weight: 400;">Pfizer launched this spinoff </span></a><span style="font-weight: 400;">biopharmaceutical startup in 2017. The company's furthest-along drug is </span><a href="https://www.springworkstx.com/pipeline/"><span style="font-weight: 400;">nirogacestat,</span></a><span style="font-weight: 400;"> which is intended for </span><a href="https://www.springworkstx.com/patients-families/desmoid-tumor/"><span style="font-weight: 400;">desmoid tumors,</span></a><span style="font-weight: 400;"> a rare tumor type that has no FDA-approved treatments. The drug is being studied in late-stage research.</span></p>
<p><span style="font-weight: 400;">The biotech's latest funding round was led by the hedge fund Perceptive Advisors. Some other key investors were Pfizer Ventures, British drugmaker GlaxoSmithKline, and Bain Capital. The funding will be used to move nirogacestat and another drug for rare cancers forward, potentially towards FDA approvals and commercial sale, SpringWorks Therapeutics said.</span><span style="font-weight: 400;"></span></p></p>
<br/><br/><h3>27. Compass Therapeutics</h3>
<img src="https://static4.businessinsider.com/image/5551064269bedd597c02b68e-400-300/27-compass-therapeutics.jpg" alt="" />
<p><p><strong>Round size and year:</strong><span style="font-weight: 400;"> $132 million in 2018</span></p>
<p><strong>More about Compass Therapeutics:</strong><span style="font-weight: 400;"> The biotech company makes drugs intended to engage the human immune system and fend off diseases like cancer, inflammatory conditions and autoimmune disease. </span></p>
<p><span style="font-weight: 400;">Much of its pipeline of drugs is still young, with just one experimental drug so far making its way into early-stage research, being tested out in humans.&nbsp;</span><span style="font-weight: 400;"></span></p>
<p><span style="font-weight: 400;">The series A venture funding in 2018 was led by the investment firm OrbiMed. Other notable investors have included health-tech VC firm F-Prime Capital Partners, Cowen Private Investments and Peter Thiel's Thiel Capital. </span><span style="font-weight: 400;"></span></p></p>
<br/><br/><h3>26. Tmunity</h3>
<img src="https://static2.businessinsider.com/image/5a846653d030721b008b4736-400-300/26-tmunity.jpg" alt="" />
<p><p><strong>Round size and year:</strong><span style="font-weight: 400;"> $135 million in 2018</span></p>
<p><strong>More about Tmunity:</strong><span style="font-weight: 400;"> The Philadelphia-based biotech's work is rooted in T cells, which are a component of the human body's disease-fighting immune system. Tmunity </span><span style="font-weight: 400;">is </span><a href="https://www.tmunity.com/about-us"><span style="font-weight: 400;">developing</span></a> genetically-engineered T cells <span style="font-weight: 400;">to treat many types of cancer. Its two furthest-along experimental drugs are being tested out in early-stage research in humans.</span></p>
<p><span style="font-weight: 400;">The company's technology, which comes out of the University of Pennsylvania, could also have implications for </span><span style="font-weight: 400;">infectious diseases and autoimmune disease. It </span><span style="font-weight: 400;">is valued at $300 million, according to PitchBook.&nbsp;</span></p></p>
<br/><br/><h3>25. Beam Therapeutics</h3>
<img src="https://static3.businessinsider.com/image/5bce028f8f5fcb5c80255402-400-300/25-beam-therapeutics.jpg" alt="" />
<p><p><strong>Round size and year:</strong><span style="font-weight: 400;"> $135 million in 2019</span></p>
<p><span style="font-weight: 400;"><strong>More about Beam Therapeutics:</strong> The biotech company is using a new type of <a href="https://beamtx.com/about/">CRISPR gene editing</a> called "base editing" in hopes of treating diseases in a more precise way. </span><span style="font-weight: 400;"></span><span style="font-weight: 400;"></span></p>
<p><span style="font-weight: 400;">Beam Therapeutics was cofounded by <span>David Liu, Feng Zhang, and Keith Joung,&nbsp;</span></span><span style="font-weight: 400;">pioneers in the CRISPR field, and has technology licensed from places like Harvard and MIT.&nbsp;</span><span style="font-weight: 400;"><span></span></span><span style="font-weight: 400;">The company is valued around $675 million, according to PitchBook.&nbsp;</span></p></p>
<br/><br/><h3>24. Ambys</h3>
<img src="https://static4.businessinsider.com/image/53fe5d55ecad045956ccb61a-400-300/24-ambys.jpg" alt="" />
<p><p><strong>Round size and year: </strong><span style="font-weight: 400;">$140 million in 2018</span></p>
<p><strong>More about Ambys:</strong><span style="font-weight: 400;"> The San Francisco-based biotech company is </span><a href="https://www.ambys.com/about-us/"><span style="font-weight: 400;">developing</span></a> technologies like cell therapy, gene therapies, and more traditional targeted drugs for advanced liver diseases.&nbsp;<span style="font-weight: 400;"></span></p>
<p>Its investors include the Japanese pharmaceutical company Takeda and VC Third Rock Ventures. Ambys is valued at $160 million, according to PitchBook.&nbsp;</p></p>
<br/><br/><h3>23. Poseida Therapeutics</h3>
<img src="https://static1.businessinsider.com/image/5c9a95d877584e79ef6b0597-400-300/23-poseida-therapeutics.jpg" alt="" />
<p><p><strong>Round size and year:</strong><span style="font-weight: 400;"> $142 million in 2019</span></p>
<p><span style="font-weight: 400;"><strong>More about Poseida Therapeutics:</strong> The San Diego-based </span><a href="https://poseida.com/company/#aboutus"><span style="font-weight: 400;">biopharmaceutical company</span></a><span style="font-weight: 400;"> is developing CAR-T treatments, which harness the body's immune system, with a focus for now on cancers.&nbsp;</span><span style="font-weight: 400;"></span></p>
<p><span style="font-weight: 400;"> So far, the company has four such drugs in its pipeline with one drug, </span><a href="https://poseida.com/pipeline/"><span style="font-weight: 400;">P-BMCA-101</span></a>,<span style="font-weight: 400;"> having made it to early-stage research in humans for multiple myeloma.&nbsp;</span></p>
<p><span style="font-weight: 400;">Earlier this year the company decided to </span><a href="https://www.fiercebiotech.com/biotech/car-t-maker-poseida-forgoes-ipo-hauls-142m-series-c-instead"><span style="font-weight: 400;">forgo its IPO plans</span></a><span style="font-weight: 400;">, instead raising a $142 million series C funding round with Swiss drug giant Novartis as one of the major investors.</span></p>
<p><span style="font-weight: 400;">The company is valued at $568 million, according to PitchBook.&nbsp;</span></p></p>
<br/><br/><h3>22. BioMotiv</h3>
<img src="https://static4.businessinsider.com/image/5ae0dc5219ee864d008b4695-400-300/22-biomotiv.jpg" alt="" />
<p><p><strong>Round size and year:</strong><span style="font-weight: 400;"> $146 million in 2018</span></p>
<p><strong>More about BioMotiv:</strong><span style="font-weight: 400;"> The company aims to speed up the process of bringing new drugs to market, investing in </span><a href="https://www.biomotiv.com/portfolio"><span style="font-weight: 400;">a number of companies</span></a><span style="font-weight: 400;"> with a range of approaches to do just that. </span></p>
<p><span style="font-weight: 400;">BioMotiv also has </span><span style="font-weight: 400;">partnerships with established companies like drugmakers Takeda and Biogen to develop and sell new technologies.&nbsp;</span></p>
<p><span style="font-weight: 400;">The company has raised nearly $270 million, and its valuation is undisclosed, according to PitchBook.&nbsp;</span><span style="font-weight: 400;"></span></p></p>
<br/><br/><h3>21. Ascentage Pharma</h3>
<img src="https://static3.businessinsider.com/image/5d53021ecd97841e9f47568d-400-300/21-ascentage-pharma.jpg" alt="" />
<p><p><strong>Round size and year:</strong><span style="font-weight: 400;"> $150 million in 2018</span></p>
<p><strong>More about Ascentage Pharma:</strong><span style="font-weight: 400;"> The biopharmaceutical </span><a href="https://www.ascentagepharma.com/company/about-us/"><span style="font-weight: 400;">company develops</span></a><span style="font-weight: 400;"> small molecule drugs for cancer, Hepatitis B and age-related illnesses.&nbsp;</span></p>
<p><span style="font-weight: 400;">The company has a number of experimental drugs in the works, including its </span><a href="https://www.ascentagepharma.com/product-candidates/apoptosis-targeted-candidates/AT-101/"><span style="font-weight: 400;">AT-101 drug,</span></a> which is mid/late-stage research for&nbsp;<span style="font-weight: 400;"></span><span style="font-weight: 400;">chronic lymphocytic leukemia.&nbsp;</span></p>
<p><span style="font-weight: 400;">The company planned to go public on the Hong Kong Stock Exchange in 2018, but it was postponed.</span></p></p>
<br/><br/><h3>20. Galera Therapeutics</h3>
<img src="https://static3.businessinsider.com/image/5cabb98fc6cc5061ea03cafb-400-300/20-galera-therapeutics.jpg" alt="" />
<p><p><strong>Round size and year:</strong><span style="font-weight: 400;"> $150 million in 2018</span></p>
<p><strong>More about Galera Therapeutics:</strong><span style="font-weight: 400;"> Founded in 2009, the biotech company focuses on therapies to target</span><a href="https://www.galeratx.com/our-science/reducing-oral-mucositis-om"><span style="font-weight: 400;"> oral mucositis</span></a><span style="font-weight: 400;">, a side effect of radiotherapy during cancer treatment that causes severe pain in a patient's mouth. </span></p>
<p><span style="font-weight: 400;">Galera's </span><a href="https://www.galeratx.com/our-pipeline/gc4419"><span style="font-weight: 400;">GC4419</span></a> drug<span style="font-weight: 400;"> is in mid-stage research for oral muscositis, for which it</span><span style="font-weight: 400;"> has received "breakthrough therapy" and "fast track" designations from the FDA that help speed along drug development.</span></p>
<p><span style="font-weight: 400;">In August 2018, the company raised $70 million of funding in a series C round led by VC firm Clarus Ventures. The company is valued at around $250 million, according to PitchBook.&nbsp;</span></p></p>
<br/><br/><h3>19. Freenome</h3>
<img src="https://static1.businessinsider.com/image/58b5f6305490571c008b7334-400-300/19-freenome.jpg" alt="" />
<p><p><strong>Round size and year:</strong><span style="font-weight: 400;"> $160 million in 2019</span></p>
<p><strong>More about Freenome</strong><span style="font-weight: 400;">: The San Francisco-based </span><a href="https://www.freenome.com/our-work"><span style="font-weight: 400;">AI genomics company</span></a><span style="font-weight: 400;"> was founded in 2014 and uses routine blood tests with the aim of detecting early signs of cancer. The idea is to detect the disease early before it becomes harder to treat.&nbsp;</span></p>
<p><span style="font-weight: 400;">In July 2019, the company raised $160 million of Series B venture funding in a deal led by Polaris Partners and RA Capital Management. The funds will be used for a validation study and an application would be submitted for its colorectal cancer screening test to the FDA and CMS under the Parallel Review Program, according to PitchBook.&nbsp;</span></p></p>
<br/><br/><h3>18. Lyell</h3>
<img src="https://static6.businessinsider.com/image/5a2eb5888a4986d4138b4ff2-400-300/18-lyell.jpg" alt="" />
<p><p><strong>Round size and year:</strong><span style="font-weight: 400;"> $179 million in 2019</span></p>
<p><span style="font-weight: 400;"><strong>More about Lyell:</strong> The biotech company is focused on treating cancer with cell therapies. <a href="https://lyell.com/#home-about">Lyell's goal</a> is to develop cell-based immunotherapies for cancer, with a focus on CAR-Ts and solid tumors.</span></p>
<p><span style="font-weight: 400;">It's named after a Scottish geologist who paved the way for Charles Darwin's theory of evolution.</span></p>
<p><span style="font-weight: 400;">Earlier this year, the company raised $179 million of Series B venture funding from Foresite Capital Management, ARCH Venture Partners and Altitude Life Science Ventures. The company's valuation is now at $1.16 billion, according to PitchBook.&nbsp;</span></p>
<p><br /><br /></p></p>
<br/><br/><h3>17. Helix</h3>
<img src="https://static1.businessinsider.com/image/5b3154e11ae6623d008b561b-400-300/17-helix.jpg" alt="" />
<p><p><strong>Round size and year: </strong>$200 million in 2018</p>
<p><strong>More about Helix:</strong><span style="font-weight: 400;"> The San Francisco-based </span><a href="https://www.helix.com/pages/population-health"><span style="font-weight: 400;">company</span></a><span style="font-weight: 400;"> is a DNA testing startup that recently launched a </span><a href="https://www.businessinsider.com/helix-new-genetics-dna-health-test-breast-cancer-cholesterol-2019-3"><span style="font-weight: 400;">new testing kit</span></a><span style="font-weight: 400;"> that assesses your risk of diseases like breast cancer, colon cancer, and high cholesterol. The company is set to rival the better-known DNA testing company 23andMe.&nbsp;</span></p>
<p><span style="font-weight: 400;">The test kit is called GenePrism, and is the result of a year-long collaboration between Helix and clinical diagnostics company PerkinElmer.</span></p>
<p><span style="font-weight: 400;">In May 2019, the company closed two of its four offices and cut an undisclosed number of its staff, </span><a href="https://www.bloomberg.com/news/articles/2019-05-22/dna-test-startup-helix-cuts-staff-closes-offices-after-shift"><span style="font-weight: 400;">Bloomberg News reported</span></a><span style="font-weight: 400;">. Co-founder Justin Kao told Bloomberg that "we are realigning our business to focus on population health, we are also refocusing our team in support of this goal."&nbsp;</span></p>
<p><strong><em>Read more: </em></strong><em><a href="https://www.businessinsider.com/helix-new-genetics-dna-health-test-breast-cancer-cholesterol-2019-3">A Silicon Valley startup just launched a DNA-based health test that could be a big competitor to 23andMe</a></em></p></p>
<br/><br/><h3>16. Sana Biotechnology</h3>
<img src="https://static5.businessinsider.com/image/5661b77284307623008b76ac-400-300/16-sana-biotechnology.jpg" alt="" />
<p><p><strong>Round size and year: </strong>$219 million in 2019</p>
<p><strong>More about Sana Biotechnology:</strong><span style="font-weight: 400;"> The Seattle-based biotech company </span><a href="http://sana.com/"><span style="font-weight: 400;">develops</span></a><span style="font-weight: 400;"> engineered cells to create medicines to treat various diseases.&nbsp;</span></p>
<p><span style="font-weight: 400;">Founded by Harvard faculty members, Sana also recently <a href="https://www.biospace.com/article/releases/harvard-researchers-immune-silent-stem-cell-technology-licensed-to-sana-biotechnology/"> licensed</a> new step cell technology from Harvard in hopes of developing cell therapies that don't need to be personalized to an individual patient, also called an "off-the-shelf" approach</span><span style="font-weight: 400;">.</span></p>
<p><span style="font-weight: 400;"> </span><span style="font-weight: 400;">The company's founding venture capital firms include ARCH Venture Partners, Flagship Pioneering, and F-Prime Capital, and it is&nbsp;</span><span style="font-weight: 400;">valued at $1.15 billion, according to PitchBook.&nbsp;</span></p></p>
<br/><br/><h3>15. EdiGene</h3>
<img src="https://static3.businessinsider.com/image/5b4cc54167ce3530008b48f2-400-300/15-edigene.jpg" alt="" />
<p><p><strong>Round size and year: </strong>$227 million in 2017</p>
<p><strong>More about EdiGene:</strong><span style="font-weight: 400;"> T<span>he biotech company develops genome editing technologies to create a variety of therapies for different diseases and cancers.</span></span></p>
<p>&nbsp;</p></p>
<br/><br/><h3>14. WuXi NextCODE</h3>
<img src="https://static5.businessinsider.com/image/5c7cc2822628980b6803bdd3-400-300/14-wuxi-nextcode.jpg" alt="" />
<p><p><strong>Round size and year: </strong>$200 million in 2018, $240 million in 2017</p>
<p><strong>More about WuXi NextCODE:</strong><span style="font-weight: 400;"> The US-based company is developing a platform for genomic data. Its investors include Sequoia Capital China and Amgen Ventures.&nbsp;</span><span style="font-weight: 400;"></span></p></p>
<br/><br/><h3>13. Indigo Agriculture</h3>
<img src="https://static3.businessinsider.com/image/5d42fd4a100a240588647105-400-300/13-indigo-agriculture.jpg" alt="" />
<p><p><strong>Round size and year: </strong>$250 million in 2018, $203 million in 2017</p>
<p><strong>More about Indigo Agriculture:</strong><span style="font-weight: 400;"> The Boston-based agricultural tech company uses microbiology and other technology to improve the growth of crops like cotton, wheat, corn, soybeans and rice. </span><a href="https://www.indigoag.com/pages/news/indigo-cotton-demonstrates-continuous-improvement"><span style="font-weight: 400;">According to the company</span></a><span style="font-weight: 400;">, in 2018 it improved the cotton yield by 14% in commercial fields of West Texas, an improvement from 11% in 2016.&nbsp;</span></p>
<p><span style="font-weight: 400;">The company has a valuation of </span><a href="https://www.businessinsider.com/artificial-intelligence-startups-valued-at-1-billion-or-more-list-2019-8#indigo-agriculture-35-billion-36"><span style="font-weight: 400;">$3.5 billion</span></a><span style="font-weight: 400;"> with investors from Activant Capital Group, Alaska Permanent Fund, Baillie Gifford &amp; Co. and Flagship Pioneering, </span><a href="https://www.cbinsights.com/company/symbiota"><span style="font-weight: 400;">according to CB Insights</span></a><span style="font-weight: 400;">.&nbsp;&nbsp;</span></p></p>
<br/><br/><h3>12. Celularity</h3>
<img src="https://static3.businessinsider.com/image/5bbf8fb7a4cb6258d97859d2-400-300/12-celularity.jpg" alt="" />
<p><p><strong>Round size and year: </strong>$250 million in 2018</p>
<p><strong>More about Celularity:</strong><span style="font-weight: 400;"> The </span><a href="https://www.businessinsider.com/celularity-placental-stem-cell-treatments-for-cancer-longevity-2018-2"><span style="font-weight: 400;">New Jersey-based startup</span></a>,<span style="font-weight: 400;"> a spinoff from the biotech Celgene, is using stem cells from placentas for various regenerative medicine and cell therapy treatments for cancer. The company currently has </span><a href="https://www.celularity.com/"><span style="font-weight: 400;">six therapies</span></a> <span style="font-weight: 400;">in its pipeline, including two of its furthest-along drugs, which are in early/mid-stage research and intended for multiple myeloma and acute myeloid leukemia.&nbsp;</span></p>
<p>Investors include United Therapeutics, Human Longevity and Celgene. It is valued at $480 million, according to PitchBook.&nbsp;</p></p>
<br/><br/><h3>11. Anthos Therapeutics</h3>
<img src="https://static4.businessinsider.com/image/59cebae2f37c8d283e40db1d-400-300/11-anthos-therapeutics.jpg" alt="" />
<p><p><strong>Round size and year: </strong>$250 million, 2019&nbsp;</p>
<p><strong>More about Anthos Therapeutics:</strong><span style="font-weight: 400;"> Based in Boston, the biopharmaceutical company is creating targeted therapies for high-risk cardiovascular patients. Earlier this year, the investment company Blackstone Life Sciences and leading pharmaceutical company Novartis </span><a href="https://www.anthostherapeutics.com/press-release-february-2019/"><span style="font-weight: 400;">launched the company</span></a><span style="font-weight: 400;">. </span></p>
<p><span style="font-weight: 400;">As part of the deal, Anthos licensed the targeted therapy, </span><a href="https://www.anthostherapeutics.com/#about-maa868"><span style="font-weight: 400;">MAA868</span></a><span style="font-weight: 400;">, which helps multiple cardiovascular disorders, like blood clotting. Blackstone funded the full $250 million and will control the company, while Novartis has a minority stake in Anthos, <a href="https://www.anthostherapeutics.com/press-release-february-2019/">their press release stated</a>.&nbsp;</span></p></p>
<br/><br/><h3>10. Century Therapeutics</h3>
<img src="https://static5.businessinsider.com/image/529641996da81187234de489-400-300/10-century-therapeutics.jpg" alt="" />
<p><p><strong>Round size and year:</strong> $250 million in 2019</p>
<p><strong>More about Century Therapeutics:</strong> The Philadelphia-based biotech is working in a <a href="https://www.businessinsider.com/investors-are-betting-on-new-type-of-car-t-for-bone-marrow-transplants-2019-3">hot new area</a> of cancer research, to develop stem cells that are engineered to kill off cancer tumors.</p>
<p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/investors-are-betting-on-new-type-of-car-t-for-bone-marrow-transplants-2019-3">Companies have poured $8.5 billion into creating a new version of a cutting-edge, highly personalized cancer treatment</a></em></p>
<p>Century Therapeutics was founded in 2018 by the healthcare investment firm Versant Ventures, and has partnerships with German drugmaker Bayer as well as a stem cell-focused subsidiary of the Japanese multinational Fujifilm Corporation. Century Therapeutics is led by Lalo Flores, a veteran of Johnson &amp; Johnson and Merck, and it has raised about $280 million total, according to PitchBook.&nbsp;</p></p>
<br/><br/><h3>9. Brii Biosciences</h3>
<img src="https://static3.businessinsider.com/image/5b7a86311982d88c308b46bb-400-300/9-brii-biosciences.jpg" alt="" />
<p><p><strong>Round size and year:</strong> $260 million in 2018</p>
<p><strong>More about Brii Biosciences:</strong> The biotech is centered around bringing therapeutic innovations to China, where patients haven't always had access to them.</p>
<p>It was launched last year with advisors like Alnylam CEO John Maraganore and a board of directors that includes noted biotech VC Robert Nelsen and former Biogen CEO George Scangos.</p>
<p>Brii Biosciences has operations in both China and the US and is led by Zhi Hong, a onetime GlaxoSmithKline senior VP. It has raised $260 million from investors like Nelsen's ARCH Venture Partners and Sequoia Capital, according to PitchBook.&nbsp;</p></p>
<br/><br/><h3>8. ADC Therapeutics</h3>
<img src="https://static1.businessinsider.com/image/5d52d176cd978467d0153755-400-300/8-adc-therapeutics.jpg" alt="" />
<p><p><strong>Round size and year:</strong> $276 million in 2019</p>
<p><strong>More about ADC Therapeutics:</strong> The cancer-focused ADC Therapeutics was founded in 2011 and is based in Switzerland. It's led by Chris Martin, who sold his last company, Spirogen, to AstraZeneca in 2013.&nbsp;</p>
<p>ADC Therapeutics has raised $551 million at an undisclosed valuation, according to PitchBook. The company was in the early stages of exploring options like an IPO in the fall of 2018, for an estimated value of about $2 billion, <a href="https://www.bloomberg.com/news/articles/2018-09-17/astrazeneca-backed-adc-therapeutics-is-said-to-weigh-ipo-sale">Bloomberg News reported then.</a></p></p>
<br/><br/><h3>7. Viela Bio</h3>
<img src="https://static4.businessinsider.com/image/5cc728ebb14bf42ebc3d9a5d-400-300/7-viela-bio.jpg" alt="" />
<p><p><strong>Round size and year:</strong> $282 million in 2018</p>
<p><strong>More about Viela Bio:</strong> The Gaithersburg, Maryland-based biotech makes drugs for autoimmune conditions and diseases of inflammation by targeting certain pathways in the body.&nbsp;</p>
<p>Viela Bio has finished late-stage research for its furthest-along product, an experimental medicine for the central nervous system disorder neuromyelitis optica, and <a href="https://vielabio.com/seriesb_75m/">plansvto file</a> with the FDA for a review of the medicine.</p>
<p>Since it started as a spinoff from AstraZeneca's MedImmune, Viela has raised $357 million at a valuation of $735 million, according to PitchBook.</p>
<p>The Jefferies team's prediction, which was made in early August, appears particularly apt: Viela now plans to raise about $150 million in an IPO, according to a <a href="https://www.sec.gov/Archives/edgar/data/1734517/000119312519234073/d750921ds1.htm">SEC filing</a> from late August.&nbsp;</p></p>
<br/><br/><h3>6. Harmony Biosciences</h3>
<img src="https://static2.businessinsider.com/image/5a6b61d11784254f0f8b4bf4-400-300/6-harmony-biosciences.jpg" alt="" />
<p><p><strong>Round size and year:</strong> $295 million in 2018</p>
<p><strong>More about Harmony Biosciences:</strong> The Pennsylvania-based biotech was founded in 2017 and makes a new medication for narcolepsy. The condition affects up to 200,000 Americans, but "there have been no new advancements to treat the most disruptive symptoms of this disorder in over a decade," according to its Chief Medical Officer <a href="https://www.harmonybiosciences.com/science">Jeffrey Dayno</a>.&nbsp;</p>
<p>On Thursday, the FDA <a href="https://www.prnewswire.com/news-releases/harmony-biosciences-announces-fda-approval-of-wakix-pitolisant-a-first-in-class-medication-for-the-treatment-of-excessive-daytime-sleepiness-in-adult-patients-with-narcolepsy-300902091.html">approved</a> Harmony Biosciences' narcolepsy treatment, Wakix, making it the first such treatment "<span>not scheduled as a controlled substance" by the US Drug Enforcement Administration, the company said.&nbsp;</span></p>
<p>Harmony Biosciences has raised nearly $500 million, according to PitchBook.&nbsp;</p></p>
<br/><br/><h3>5. Rakuten Medical</h3>
<img src="https://static2.businessinsider.com/image/56670ab384307655008b850d-400-300/5-rakuten-medical.jpg" alt="" />
<p><p><strong>Round size and year:</strong> $350 million in 2018</p>
<p><strong>More about Rakuten Medical:</strong> The San Mateo, California-based biotech is focused on new therapeutic approaches to treating cancer, using a tech platform that it hopes will get the immune system to fight cancer without harming normal, non-cancerous tissue.</p>
<p>The biotech is led by the Japanese billionaire <a href="https://www.businessinsider.com/hiroshi-mikitani-rakuten-team-building-2015-12">Hiroshi Mikitani</a>, who is also founder and CEO of the large Japanese e-commerce retailer Rakuten. Mikitani says he was <a href="https://rakuten-med.com/CEOletter">inspired to fund the cancer research</a> after his father was diagnosed with pancreatic cancer in 2012.&nbsp;</p>
<p>Rakuten Medical has raised about $470 million and is valued at $1.15 billion, according to PitchBook. Both Mikitani and Rakuten have invested in Rakuten Medical.&nbsp;</p></p>
<br/><br/><h3>4. Relay Therapeutics</h3>
<img src="https://static2.businessinsider.com/image/5a3296feb0bcd50f048b4dfc-400-300/4-relay-therapeutics.jpg" alt="" />
<p><p><strong>Round size and year:</strong> $400 million in 2018</p>
<p><strong>More about Relay Therapeutics:</strong> The Cambridge, Massachusetts-based biotech was founded with a <a href="https://www.businessinsider.com/relay-therapeutics-raises-63-million-from-gv-and-section-32-2017-12">focus on protein motion</a>, with the intent of developing better drugs for diseases like cancer.&nbsp;</p>
<p>It has raised about $520 million from investors like SoftBank, <a href="https://www.businessinsider.com/biotech-stocks-to-invest-in-eli-casdin-of-casdin-capital-2019-6">Casdin Capital</a> and <a href="https://www.businessinsider.com/gv-life-sciences-leaders-on-investing-in-pharma-clinical-trials-2019-7">GV</a>, Google's $4.5 billion venture arm.</p>
<p><em><strong>Read:&nbsp;</strong><a href="https://www.businessinsider.com/biotech-stocks-to-invest-in-eli-casdin-of-casdin-capital-2019-6">A top investor who cashed in on recent $8 billion and $5 billion biotech takeovers earlier this year told us he's looking beyond the 'sexy' parts of healthcare as he places his next bets</a></em></p></p>
<br/><br/><h3>3. Zymergen</h3>
<img src="https://static2.businessinsider.com/image/5c11fa3d77a16541fa30ae63-400-300/3-zymergen.jpg" alt="" />
<p><p><strong>Round size and year:</strong> $407 million in 2018</p>
<p><strong>More about Zymergen:</strong> The Silicon Valley-based startup is using <a href="https://www.businessinsider.com/synthetic-biology-zymergen-raises-hundreds-millions-for-future-manufacturing-2018-12">synthetic biology</a> to make completely new products across sectors like pharmaceuticals, agriculture, electronics and personal care.</p>
<p>The idea is to make manufacturing cheaper, faster and more environmentally sustainable by grounding it in cells, versus traditional, petrochemical-based routes. One of Zymergen's new projects is a safe, nontoxic insect repellant, CEO Joshua Hoffman told Business Insider late last year.&nbsp;</p>
<p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/synthetic-biology-zymergen-raises-hundreds-millions-for-future-manufacturing-2018-12">A Silicon Valley startup with 26 patents under its belt just raised $400 million from SoftBank and Goldman Sachs to make materials from living things</a></em></p>
<p>To that aim, the startup has raised nearly $600 million, and is valued at nearly $1 billion, according to PitchBook.</p></p>
<br/><br/><h3>2. Vir</h3>
<img src="https://static1.businessinsider.com/image/55b227b15afbd3870c8b4567-400-300/2-vir.jpg" alt="" />
<p><p><strong>Round size and year:</strong> $416 million in 2018</p>
<p><strong>More about Vir:&nbsp;</strong>Founded by Robert Nelsen, who Forbes has <a href="https://www.forbes.com/sites/matthewherper/2016/05/11/rx-for-success/#14ff1bd280b2">called</a>&nbsp;"biotech's top venture capitalist," the San Francisco, California-based Vir has raised $566 million at an undisclosed valuation, according to PitchBook.&nbsp;</p>
<p>Led by former Biogen CEO George Scangos, Vir is working to develop drugs for chronic infectious diseases like hepatitis B and HIV, respiratory diseases like the flu, and infections that patients get while in the hospital.&nbsp;</p>
<p>On Tuesday, Vir filed <a href="https://www.sec.gov/Archives/edgar/data/1706431/000119312519236592/d755217ds1.htm">paperwork</a> with the US Securities and Exchange Commission to go public.</p></p>
<br/><br/><h3>1. Intarcia Therapeutics</h3>
<img src="https://static3.businessinsider.com/image/5a4e771e3225de04128b45aa-400-300/1-intarcia-therapeutics.jpg" alt="" />
<p><p><strong>Round size and year:</strong> $615 million in 2017</p>
<p><strong>More about Intarcia:</strong> The Boston, Massachusetts-based biotech is developing drugs for chronic diseases like obesity and HIV. The biotech's furthest-along product is an implant for type 2 diabetes that's intended to reduce how often patients need injections.</p>
<p>Intarcia is valued at about $4.1 billion, according to <a href="https://pitchbook.com/">PitchBook</a>, with investors including Fidelity, New Enterprise Associates, and the Bill &amp; Melinda Gates Foundation.</p>
<p><em>This story was first published in mid-August. It has been updated.</em></p></p>
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